Gunvor has announced the signing of a US$872.5mn off-balance sheet facility from a 24-bank syndicate as the energy-focused commodity trading giant seeks to diversify its financing sources.
The facility was initially launched at US$600mn but was oversubscribed by 45%, Gunvor says. ING is the facility coordinator, active bookrunner and documentation agent.
It will be used for general corporate and working capital and “evidences Gunvor’s successful strategy to grow and diversify its financing sources to support new investments and existing operations”, the company says.
“Gunvor’s strategy and business model has proven to be very resilient in volatile market conditions,” says Muriel Schwab, Gunvor’s chief financial officer.
“We appreciate our financing partners’ support and confidence in our business priorities as we embrace the energy transition, as well as Gunvor’s approach to corporate governance and risk management.”
In addition to ING, Rabobank, Natixis, Raiffeisen and Société Générale are issuing banks. Société Générale is also the facility agent.
HCC International Insurance, Liberty Mutual Insurance Europe and Mizuho Bank are bookrunning mandated lead arrangers (MLAs) on the facility.
DBS’s London branch, DZ Bank, Euler Hermes and SMBC are senior MLAs, while the Zurich branch of China Construction Bank and Deutsche Bank’s Amsterdam branch also join as MLAs.
The lead arrangers are: Atradius Credito Y Caucion SA De Seguros Y Reaseguros, Rabobank, Erste Group Bank, ICBC’s London branch, Natixis and Raiffeisen Bank.
Other arrangers are CA Indosuez, Commerzbank, Credit Suisse, First Abu Dhabi Bank, Markel Insurance SE, Société Générale, UBS and SMBC’s London branch.
The facility will be used by Gunvor’s Swiss, Dutch and German branches in addition to Gunvor Petroleum Rotterdam, Gunvor Raffinerie Inglostadt and Gunvor Singapore.
The deal comes after Gunvor refinanced a revolving credit facility for its Singapore-based Asia operations, boosting the value from US$450mn to US$830mn.
Gunvor, a major player in oil and gas trading, had a bumper year in 2020 mainly due to fluctuating oil prices during the coronavirus pandemic. The group posted an after-tax profit of US$320mn for 2020.