Gunvor has signed an oversubscribed revolving credit facility (RCF) worth US$1.23bn, which will replace maturing debt tranches. The funds will be used by Gunvor International and Gunvor SA for general corporate purposes.

Initially launched at US$1bn, the facility is made up of two tranches. Tranche A, available to Gunvor International, is a US$1bn 364-day RCF with three 364-day extension options. Tranche B, for Gunvor SA, is a US$220mn three-year RCF with a 364-day extension option. The facility also includes a US$150mn accordion option.

The new RCF will refinance the US$1.17bn 364-day tranche of Gunvor’s 2018 European RCF agreement and the US$195mn three-year tranche of its 2017 facility, both of which were amended and extended in November last year in another oversubscribed outing to the markets.

Bookrunning mandated lead arrangers (MLAs) were Crédit Agricole CIB, Credit Suisse, ING, Natixis, Rabobank, Société Générale, UBS and UniCredit.

Crédit Agricole CIB, ING, Natixis, Rabobank, Société Générale and UniCredit acted as active bookrunners while Credit Suisse came in as facility and swingline agent.

Joining as senior MLA Emirates NBD, while Citigroup, DZ Bank and Mizuho came in as MLAs.

Apicorp, Commerzbank, DBS, ICBC, MUFG, SMBC and Sumitomo Mitsui Trust Bank were lead arrangers, while ABN Amro, Arab Bank, Bank ABC, Banque de Commerce et de Placements, Erste Bank, Habib Bank, KfW-Ipex and Mashreqbank, Raiffeisen Bank were arrangers.

Garanti Bank and UBAF joined as participants on the deal.

“The strong, continued support Gunvor has seen from our banking partners underscores their confidence in our business model, as well as our position as a top energy trader,” says Gunvor Group CFO Muriel Schwab. “Established trading companies with robust risk management and corporate governance have benefited during this tumultuous year. Prudent trading amidst the volatility and a consistent underlying business have further reinforced Gunvor’s ability to deliver a strong performance. For us, this translates into continued solid access to unsecured sources of funding and a positive outlook.”

Gunvor says it now maintains about US$17bn in financing lines, down from US$20bn a year ago. In 2018, it diversified its financing into sustainability-linked financing with a US$745mn secured borrowing base facility that included performance commitments related to its sustainability targets. In February this year, after meeting its targets, it renewed the facility for another year.