Trafigura Group Pte Ltd closes JPY93.75 billion Japanese term loan facility
Singapore, 21 March 2022 – Trafigura Group Pte Ltd. (“Trafigura” or the “Company”), a market leader in the global commodities industry, has successfully refinanced its Japanese term loan credit facility (the “Samurai loan”) totalling JPY93.75 billion (equivalent USD790 million at current exchange rate). The Samurai loan was increased by JPY16.95 billion (equivalent USD140 million at current exchange rate), from the 2020 Samurai loan. The transaction was very well received by the bank market and closed substantially oversubscribed.
Christophe Salmon, Group Chief Financial Officer for Trafigura, said: “We have successfully refinanced and increased the size of our Japanese term loan which is an important pillar of Trafigura’s financial model that gives us sustained access to liquidity and capital. We are very grateful to the 22 banks who joined the facility and are supporting the continuous development trajectory of the Group.”
The Samurai Loan comprises a JPY84.75 billion 3-year credit facility (refinanced this year, maturing March 2025) and a JPY9 billion 5-year credit facility (amended but not refinanced this year, maturing March 2025).
In line with the Trafigura 2022 European Revolving Credit Facility (“ERCF”) and a first for its Samurai loan, the Company structured the 3-year tranche of the Samurai loan (JPY84.75 billion) as a sustainability-linked loan (“SLL”). The SLL is linked to key performance indicators (“KPIs”) to improve Trafigura’s sustainability performance, aligned with material issues for its business. This SLL structure and KPIs are the same as for Trafigura’s 2022 ERCF: including four KPIs to be tested annually and verified by a third-party expert, relating to cutting operational greenhouse gas emissions (Scope 1 and 2), responsible sourcing of metals (in line with ISO 20400:2017), growing Trafigura’s renewable power portfolio and the implementation of the Voluntary Principles on Security and Human Rights at Trafigura’s operations. The facility agent will apply a penalty or discount on the margin, depending on the number of KPIs met each year.
The transaction was arranged by Mandated Lead Arrangers & Bookrunners (“MLAB”) MUFG Bank, Ltd., Mizuho Bank Europe N.V., Sumitomo Mitsui Banking Corporation, and Development Bank of Japan Inc. Co-Arrangers were Bank of Communications Co., Ltd. Tokyo Branch, State Bank of India (Osaka Branch), The Gunma Bank, Ltd., and Sumitomo Mitsui Trust Bank, Ltd., (London Branch). Mizuho Bank Europe N.V. acted as Sustainability Coordinator. In addition to the four MLABs, 18 financial institutions joined the Samurai loan during syndication, including four new lenders and totalling 22 banks.
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Notes to editors
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. At the heart of global supply, Trafigura connects the world with the vital resources it needs. Through our Oil & Petroleum Products, Metals & Minerals, and Power & Renewables divisions, we deploy infrastructure, skills and a global network to move commodities from where they are plentiful to where they are needed most, forming strong relationships that make supply chains more efficient, secure and sustainable.
Trafigura also owns and operates a number of industrial assets including a majority share of global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform. With over 1,000 shareholders, Trafigura is owned by its employees and employs over 13,000 people working in 48 countries.