Singapore, 26 March 2020 – Trafigura Group Pte Ltd. (“Trafigura” or the “Company”), a market leader in the global commodities industry has successfully closed two major facilities in the international syndicated bank loan markets and issued long tenor notes in the US private placement market.
Trafigura refinanced its flagship 365-day European multi-currency syndicated revolving credit facility (the “365-day ERCF”) totaling USD1.9 billion. The 365-day ERCF, initially launched at USD1.5 billion, was very well received by the bank market and closed substantially oversubscribed, allowing the Company to upsize the facility. The 365-day ERCF will be used to refinance the maturing USD2.05 billion 365-day facility dated 14 March 2019, as well as for general corporate purposes. The pricing of the facility was unchanged from last year. In addition, the Company decided to exercise the second extension option available on the 3-year tranche of its 2018 ERCF, thereby extending the facility by 365 days and maintaining a 3-year tenor.
In a separate transaction, Trafigura returned for the fifth time to the Japanese domestic syndicated bank loan market and raised JPY76.8 billion (circa USD720 million equivalent at spot rate) via a JPY denominated term loan (the “Samurai Loan”). In addition to the three-year tranche, which Trafigura has refinanced every two years since 2012, Trafigura introduced an inaugural five-year tranche. Twenty Japanese financial institutions supported the Samurai Loan, demonstrating the continued interest of domestic lenders in Trafigura’s credit. Five new institutions joined the syndicate, while the majority of existing lenders continued to participate and increased their amount invested. This transaction refinances the 2018 Samurai Loan and will be used for general corporate purposes.
Finally, Trafigura Funding SA, a dedicated funding vehicle of the Company, issued on 25 March USD203 million of notes in the US Private Placement market with tenors of 5, 7 and 10 years. For its fifth issuance in the USPP market, Trafigura achieved its tightest ever all-in financing level. Proceeds will be used to refinance USD51.5m of maturing USPP notes and to support the refinancing of Trafigura’s EUR550 million bond coming due in April 2020.
Christophe Salmon, Chief Financial Officer for Trafigura, commented: “Given the unprecedented times that the global economy is undergoing, the simultaneous re-financing of two core credit facilities and the issuance of long tenor notes puts Trafigura in a position of strength to navigate through the uncertainties lying ahead and to seize upcoming opportunities. The timing of the execution of these financings was critical and impeccable. More than ever, we are grateful for the support and trust that the banking community and institutional investors have vested in Trafigura. They should feel very comfortable with Trafigura’s financial model, which is designed to give us access to liquidity and capital at all times, even during periods of extreme volatility in the global economy and stress in the financial system. The resilience of our model has been repeatedly tested during the many different liquidity and business cycles that we have been through for the last 27 years. It has proven its strength and will continue to do so.”
The 365-day ERCF was arranged by Mandated Lead Arrangers & Bookrunners Bank of China Limited, London Branch, ING Bank N.V. and UniCredit Bank AG acting as Active Bookrunners, along with Coöperatieve Rabobank U.A. and Société Générale Corporate & Investment Banking acting as Passive Bookrunners.
MUFG Bank, Ltd., Mizuho Bank Europe N.V., Sumitomo Mitsui Banking Corporation Europe Limited and Development Bank of Japan Inc. acted as Bookrunners and Mandated Lead Arrangers for the Samurai Loan.
SG Americas Securities, LLC and Coöperatieve Rabobank U.A. acted as joint lead placement agents in connection with Trafigura’s US private placement.
For further information please contact:
Trafigura’s Global Press Office: +41 (0) 22 592 4528 or email@example.com
Notes to editors
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. The trading business is supported by industrial and financial assets, including 49.3 percent owned 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. The Company is owned by around 700 of its 8,000 employees who work in 80 offices in 41 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD171.5 billion in 2019. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.