Singapore, 16 March 2023 – Trafigura Group Pte Ltd. (“Trafigura” or the “Company”), a market leader in the global commodities industry, announced the closing of its new 365-day European multi-currency syndicated revolving credit facilities (the “365-day ERCF”) totalling USD1.9 billion, as well as the extension and increase of its USD3.5 billion 3-year facility (“3-year ERCF”). The new 365-day ERCF, initially launched at USD1.5 billion, was very well received by the bank market and closed substantially oversubscribed.
Christophe Salmon, Trafigura’s Group Chief Financial Officer said: “We have successfully refinanced our flagship European revolving credit facility which is a key pillar of our financial model, designed to give us sustained access to liquidity and capital. We have increased our access to liquidity over the last year to manage the impact of higher volatility in global markets. The resilience and effectiveness of our funding model has proved its strength, particularly when commodity markets have been exceptionally disrupted. We are very grateful to the 54 banks who joined the facility and are supporting our strong development trajectory.”
The 365-day ERCF will be used to refinance the maturing 365-day facility dated 2 March 2022, as well as for general corporate purposes. In addition, the Company decided to exercise the first extension option available on its 3-year ERCF, extending the facility by 365 days to maintain a 3-year tenor whilst simultaneously increasing the size of this tranche by USD250 million.
In line with the last two years, the Company structured these facilities as sustainability-linked loans (“SLL”). The SLL are linked to key performance indicators (“KPIs”) to improve Trafigura’s sustainability performance, aligned with material issues for its business. This renewed SLL structure includes five KPIs, with the progress towards each target evaluated on an annual basis and verified by a third-party expert. The KPIs relate to cutting operational greenhouse gas emissions (Scope 1 & 2); responsible sourcing of metals (in line with ISO 20400:2017); growing Trafigura’s renewable power portfolio; implementation of the Voluntary Principles on Security and Human Rights at Trafigura’s operations; and reduction of lost time incident rate (“LTIR”). A penalty or discount on the margin will be applied, depending on the number of targets met each year.
The 365-day ERCF was arranged by Mandated Lead Arrangers & Bookrunners (“MLABs”) Bank of China Limited, London Branch, ING Bank N.V., Sumitomo Mitsui Banking Corporation and UniCredit Bank AG as Active MLABs, and Coperatieve Rabobank U.A. and Société Générale acted as Passive MLABs. Sumitomo Mitsui Banking Corporation and UniCredit Bank AG acted as Sustainability Coordinators. In addition to the six MLABs, 48 financial institutions joined the ERCF during syndication and/or extended their participation under the 3-year ERCF.
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Trafigura is a leading commodities group, owned by its employees and founded 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. We deploy infrastructure, market expertise and worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through joint ventures H2Energy Europe and Nala Renewables.
The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, and our Impala Terminals joint venture. The Group employs over 12,000 people and is active in 156 countries.