Commodities trader Trafigura has secured a US$235mn syndicated loan agreement with two banks and Abu Dhabi’s export finance institution, aimed at supporting the company’s purchase of UAE-produced commodities such as energy, minerals and metals.

The facility is backed by Japan’s SMBC, which coordinated the syndication, and the Commercial Bank of Dubai (CBD).

Under the terms of the agreement, the Abu Dhabi Exports Office (Adex) will also provide US$150mn in financing. CBD will provide US$56mn while SMBC supplies US$20mn in funding.

Trafigura says the deal, announced on April 14, will partly serve the UAE’s diversification agenda and also help to build up the country as a trading hub.

Group treasurer for Trafigura, Laurent Christophe, says the agreement will allow the trader to integrate the UAE’s commodities into global supply chains, supporting the nation’s “economic ambitions”.

“Together with Adex, SMBC and CBD, we are further integrating the country’s resources into international supply chains and contributing to the UAE’s vision of long-term prosperity,” Christophe says.

Jonathan Joseph-Horne, SMBC’s co-head of trade finance for the Emea region, adds the agreement “reflects confidence in the UAE’s export capabilities and its commitment to sustainable development”.

Adex previously backed a pair of Trafigura facilities: a two-year US$150mn revolving credit facility to support non-oil exports, in 2024, and a US$135mn lending facility, which covered the purchase of refined hydrocarbons as well as metals, in 2023.

Last June, the UAE’s federal export credit agency Etihad Credit Insurance partnered with several banks to launch the Xport Xpotential initiative as part of its vision to reach AED800bn (US$218bn) in non-oil exports by the next decade.