Traxys, a Luxembourg-based metals and natural resources trader, has signed a multi-currency securitisation programme with a cluster of global banks.

The US$250mn programme was arranged by Société Générale, which was part of a group of lenders that also included HSBC, ING and MUFG.

Denominated in euros and US dollars, the programme is backed by credit insured trade receivables originated by Traxys’ European and US subsidiaries.

Alistair Mules, Traxys’ group treasurer, tells GTR that the programme is split into three tranches: a short-term uncommitted tranche, as well as one-year and two-year committed portions. He says it is the first such large-scale transaction agreement the company has closed, and that the deal delivers “significant flexibility”.

Traxys says in a statement that the funding creates up to US$250mn of additional capacity and lowers the absolute cost of its financing activities.

According to Todd Hermanson, group CFO, the new securitisation programme is an “important milestone” and represents a “highly efficient, flexible and scalable” working capital finance solution for the firm.

The programme has been certified as “STS” by a third-party certification provider for both asset-backed commercial paper (ABCP) and non-ABCP investors.

Advisory firms Redbridge Debt & Treasury Advisory and Accola supported Traxys with the structuring and implementation of the programme.

The latest agreement follows Traxys refinancing and extending its revolving credit facility in an oversubscribed US$1.33bn multicurrency deal that saw the entry of new banks to the syndication.