Trafigura closes a new USD203.5 million US Private Placement, its first sustainability-linked capital markets transaction
Singapore, 28 April 2021 – Trafigura Group Pte Ltd (“Trafigura” or the “Company”), one of the world’s leading independent commodity trading companies, announced the closing of a new US Private Placement transaction, raising USD203.5 million of financing across 5, 7 and 10 year tenors.
The transaction was Trafigura’s sixth in this market, and was timed to refinance a USD98 million US Private Placement maturity and also raised over USD100 million of additional liquidity for the company. The transaction was upsized from an initial USD100 million following strong investor demand, with over half of the total amount raised in the 10 year tranche.
The transaction was the largest sustainability-linked financing on record in the US Private Placement market to date and incorporated KPIs designed to incentivise the Company to meet ambitious targets related to the reduction of greenhouse gas emissions, the further alignment of Trafigura's responsible sourcing programme with international standards for sustainable procurement, and the development of a renewable power portfolio.
Christophe Salmon, Group Chief Financial Officer for Trafigura, said: “The US Private Placement market is an important part of Trafigura’s financing strategy, offering stable access to long-term liquidity. We were pleased to incorporate the sustainability-linked mechanism into the transaction this year, taking another opportunity to demonstrate leadership in this field, whilst our investors participate in this journey alongside us.”
MUFG (MUFG Securities Americas Inc.) and Société Générale (SG Americas Securities, LLC) acted as Agents on the transaction.
For further information, please contact:
Trafigura Press Office: +41 (0) 22 592 4528 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.