Gunvor scores bumper multi-currency RCF

Commodities trader Gunvor has secured a US$2.27bn revolving credit facility from a group of over 40 banks, drawing in additional lenders from the Middle East and Europe.

The energy trading company’s Dutch and Swiss entities will use the multi-currency facility for general corporate purposes and to refinance tranches from European RCFs it signed in 2022 and 2023.

In a statement, Gunvor says the facility was “substantially upsized” from last year due to “strong support” from existing and new banking partners, which brought additional liquidity in “both tranches”.

This year’s deal consists of two tranches, a US$1.78bn RCF with a 364-day tenor and three one-year extension options, as well as a US$490mn three-year facility with an option to extend by 12 months. The agreement includes a US$400mn accordion option.

As with previous years, financing is tied to Gunvor’s performance on four key environmental, social and governance (ESG) metrics, including the trader’s reduction of scope 1 and 2 greenhouse gas emissions, as well as scope 3 emissions “associated with the improvement of energy efficiency of the shipping fleet”.

Lenders will also assess Gunvor’s investments in non-fossil fuel projects, as well as the company’s assets, joint ventures and suppliers against human rights principles.

“We are pleased to see growing support from our financing partners and to onboard new lenders in the Group’s flagship facility. The increase in commitments demonstrates the strong relationship the Company has with its banking group and its support of our growth strategy,” says Jeff Webster, Gunvor Group’s chief financial officer.

The equivalent deal last year amounted to US$1.89bn.

Arab Petroleum Investments Corporation, Emirates NBD, Mizuho Bank, Qatar National Bank, and UBS Switzerland are bookrunning mandated lead arrangers (MLAs) on this year’s deal.

They are joined by Rabobank, Crédit Agricole, ING, Natixis, SMBC, Société Générale and UniCredit Bank, which acted also acted as active bookrunners.

UBS is facility and swingline agent, while Credit Agricole CIB and SMBC serve as joint sustainability coordinators of the facility.

First Abu Dhabi Bank joins as new senior MLA, while Citi, Erste Group Bank and KfW Ipex-Bank are MLAs.

Banco BPM, Bank of China, China Construction Bank Corporation, DBS Bank, DZ Bank, Industrial and Commercial Bank of China, OTP Bank, Sumitomo Mitsui Trust Bank are lead arrangers, and are also joined by National Bank of Ras Al-Khaimah and Nedbank, which are new to the facility.

ABC International Bank, AfrAsia Bank, Arab Bank, Banque de Commerce et de Placements, CaixaBank, China CITIC Bank Corporation Limited, Commerzbank, Europe Arab Bank SA, First Commercial Bank, GarantiBank International, Habib Bank, Mashreqbank, Raiffeisen Bank International, and Union de Banques Arabes et Francaises are arrangers, alongside new lender Lloyds Bank.

Last month, Gunvor USA sealed an oversubscribed US$2.34bn borrowing base facility from a syndicate of over 20 banks.