Geneva, 20 July 2021 – Trafigura Securitisation Finance Plc (“TSF”), a receivables securitisation vehicle of Trafigura Group Pte Ltd (“Trafigura”), has successfully priced a new series of notes (“TSF 2021-1”) on the 144A/RegS Asset-Backed Securities (“ABS”) market. This is Trafigura’s sixth public ABS transaction since the inception of the programme in November 2004. TSF has since become the largest AAA/Aaa publicly rated securitisation programme of trade receivables in the world. It offers investors rare access to a blended portfolio of short-term credit exposure on oil majors, non-ferrous metals and minerals purchasers and highly rated banks.
A total of USD300 million of public notes (3-year tenor) were placed with US investors including: USD139.5 million floating rate Class A1 notes (AAA/Aaa) at 1m Libor +53bps, USD139.5 million fixed rate Class A2 notes (AAA/Aaa) at mid-swap +55bps and USD21 million fixed rate Class B notes (BBB/Baa2) at mid-swap +125bps. Many of the original investors from the previous transaction (TSF 2018-1) participated in the new offering.
The transaction was well received with participation from a total of 16 investors in the fixed and floating rate tranches. The transaction was announced on 14 July and successfully priced on 16 July, with oversubscription on both the Class A and B notes (subscription levels of Class A: 1.2x, Class B: 2.3x).
Laurent Christophe, Trafigura’s Group Treasurer, said: “For the sixth time since our first issuance in the public markets in 2007, we were able to successfully tap the ABS market from our flagship TSF programme. The successful pricing of TSF 2021-1 demonstrates not only the attractiveness of trade receivables as an underlying asset class which is rarely offered in public markets, but also the quality of the structure. Investors were mindful of the strong performance of the programme during the COVID-19 pandemic, proving once again its resilience.
“The TSF programme is now well known to institutional investors and we were pleased to attract significant interest in this new series, particularly during the busiest week of ABS issuance this year. We are committed to the ABS market and will continue to issue new series from TSF on a regular basis. We also plan to bring more diverse offerings originated by Trafigura to the ABS market such as our inventory securitisation programme,” concluded Laurent Christophe.
SMBC (Bill & Deliver), Citi and Société Générale (Structuring) acted as Joint Lead Managers, with Natixis, Mizuho and MUFG as Co-Managers on the transaction.
Bloomberg ticker: TRFIG 2021-1
For further information please contact:
Trafigura’s Global Press Office: +41 (0) 22 592 45 28 or email@example.com
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world and has recently established a power and renewables trading division.
The trading business is supported by industrial and financial assets, including a majority ownership of global zinc and lead producer Nyrstar which has mining, smelting and other operations located in Europe, Americas and Australia; a significant shareholding in global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management.
With circa 850 shareholders, Trafigura is owned by its employees. Over 8,500 employees work in 48 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD147 billion in 2020. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.