Trafigura Group Pte Ltd signs USD5.3 billion European Syndicated Revolving Credit Facilities
Singapore, 3 March 2022 – Trafigura Group Pte Ltd. (“Trafigura” or the “Company”), a market leader in the global commodities industry, has successfully refinanced its flagship European multi-currency syndicated revolving credit facilities (the “ERCF”) totalling USD5.295 billion. The ERCF, initially launched at USD4.5 billion, 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 our flagship revolving credit facility which is a key pillar of Trafigura’s financial model designed to give us sustained access to liquidity and capital, including during periods of extreme volatility in the global economy and at times of profound geopolitical tensions. Trafigura continues to maintain significant available liquidity to manage price volatility currently being seen in oil and natural gas. The resilience and effectiveness of our funding model is proving its strength again at a time where energy markets are moving into a new paradigm. We are very grateful to the 55 banks who joined the facility and are supporting the continuous development trajectory of the Group.”
The ERCF comprises a USD2.025 billion 365-day revolving credit facility with two 365-day extension options and a USD3.270 billion 3-year revolving credit facility with two 365-day extension options. The facilities will be used to refinance the maturing 365-day facility dated 4 March 2021 and the existing 3-year tranche of the Company’s facility dated 15 March 2018 (which had been extended in previous years), as well as for general corporate purposes.
In line with the 2021 ERCF, the Company structured the 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 four KPIs to be tested annually and verified by a third-party expert, relating to cutting operational greenhouse gas emissions (Scope 1 & 2), responsible sourcing of metals (in line with ISO20400:2017), 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 365-day ERCF was arranged by Mandated Lead Arrangers & Bookrunners (“MLAB”) Bank of China Limited, London Branch, ING Bank N.V., Société Générale and UniCredit Bank AG as Active MLABs, and Coöperatieve Rabobank U.A. acted as Passive MLAB. Société Générale and UniCredit Bank AG acted as Sustainability Coordinators. In addition to the five MLABs, 50 financial institutions joined the ERCF during syndication, including five new lenders and totalling 55 banks.
For further information, please contact:
Trafigura Press Office: +41 (0) 22 592 45 28 or firstname.lastname@example.org
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.