Trading giant Gunvor has significantly boosted the size of its revolving credit facility for the issuance of off-balance sheet instruments, attracting 30 participants to a transaction totalling US$1.37bn. 

The facility supports Geneva-headquartered Gunvor’s issuance of standby letters of credit, bid bonds, performance bonds and other off-balance sheet guarantee instruments.  

Last year’s facility was launched at US$850mn but closed at US$990mn after strong bank interest. This time, Gunvor initially launched the facility at US$1bn but says it was again “significantly” oversubscribed after syndication. 

As with last year, ING Bank is sole co-ordinator and documentation agent, while Société Générale continues as facility agent. Issuing banks are ING, Natixis, Rabobank, Raiffeisen, Société Générale and SBMC. 

All 25 lenders and insurers from last year’s facility are continuing their participation, while four new banks – ABC International Bank, Abu Dhabi Commercial Bank, Commercial Bank of Dubai and Lloyds Bank – have also joined, along with Credendo Guarantees & Specialty Risks. 

The other European participants are Atradius, CA Indosuez, Commerzbank, Credit Suisse, Deutsche Bank, DZ Bank, Erste Group, Euler Hermes, HCC International Insurance Company, Liberty Mutual Insurance and UBS.  

Also joining are Bank of China, China Construction Bank, DBS Bank, First Abu Dhabi Bank, Industrial and Commercial Bank of China, Markel Insurance, Mizuho Bank and Sumitomo Mitsui Trust Bank, in some cases via European branches or subsidiaries. 

Jeff Webster, Gunvor’s chief financial officer, says: “The sizeable increase in the facility reflects Gunvor’s growth over the past two years and our desire to expand globally. This is a clear demonstration of the commitment of our banking and insurance partners to support our strategy.” 

Gunvor’s Singapore entity has also this month closed a 26-bank revolving credit facility totalling US$1.12bn, used to refinance existing debt and for general corporate and working capital purposes. 

In May, the trader secured a US$600mn borrowing base facility to support its oil business in Asia, deploying Komgo as a digital agent for the first time in any of its financing arrangements.