Trafigura successfully places USD500 M of notes in asset-backed securities markets
Geneva, 26th June 2017 – Trafigura Securitisation Finance Plc (“TSF”), the securitisation vehicle of the Trafigura Group Pte Ltd, has successfully priced a new Series (“Series TSF 2017-1 Notes”) on the 144A/RegS Asset-Backed Securities (“ABS”) markets. This is Trafigura’s fourth public ABS transaction since the inception of the programme in November 2004. TSF has since become the largest AAA/Aaa publicly rated securitisation programme of trade receivables in the world. It offers investors a rare access to a blended portfolio of short term credit exposure on oil majors, non-ferrous metals and minerals purchasers and highly rated banks.
The offering was significantly oversubscribed. A total of USD500 m of public notes (3Y tenor) were placed with US and European investors including: USD235m floating rate Class A1 notes (AAA/Aaa) at 1m Libor +85bps, USD230m fixed rate notes Class A2 (AAA/Aaa) Notes at Int. swaps +85bps and USD35m floating rate B notes (BBB/Baa2) at 1m Libor +170 bps. The Class A2 fixed rate notes is a new feature of the programme and has enabled to attract new investors in order to further diversify the investor base of the programme in the ABS market. Many of the original investors from the previous US 144A transaction (TSF 2014-1) also participated in the new offering.
The transaction was very well received, with distribution in Europe and the US and participation from a total of 18 investors in the fixed and floating rate tranches. The transaction officially announced on Monday 19th June, with oversubscription on both the Class A and B notes and subscription levels of: Class A: 1.4x, Class B: 5.0x. The transaction tested at levels tighter than guidance on both the Class A and Class B, and successfully launched and upsized on Wednesday 21st June, with pricing on Thursday 22nd June. Final upsize subscription levels were: Class A: 1.2x, Class B: 2.7x.
Laurent Christophe, Trafigura’s Head of Corporate Finance, said: “Once again we were able to successfully tap the 144A and RegS asset backed securities markets from our flagship Trafigura Securitisation Finance programme which we see as a key pillar of our funding strategy. The successful launch of this new series demonstrates not only the attractiveness of the underlying asset class which is very rarely offered in public markets, but also the quality of the issuance structure.
“Trafigura is regular issuer in the ABS markets and we were pleased to witness that investors have become much more familiar with the trade receivables asset class and with Trafigura as an originator. Investors have been able to test the performance of the programme through major stress periods such as the global financial crisis, the Euro sovereign crisis and various commodity cycles. They were able to see that the programme is highly resilient as demonstrated by the strong performance of the collateral and our ability to maintain AAA and Aaa credit ratings over a 13-year a period. We see this programme as a competitive edge in the commodity trading sector where diversification of liquidity sources is more prevalent than ever. This is also why we wanted to widen the appeal of the programme and decided to launch a fixed rate note tranche which well received by investors. The Trafigura Securitisation Finance programme achieved the tightest spreads at the largest size since the global financial crisis,” concluded Laurent Christophe.
Société Générale, Citi and MUFG acted as Joint Lead Managers whilst Natixis, Rabobank and SMBC were co-managers on the transaction.
Bloomberg ticker: TRFIG 2017-1
For further information please contact:
Trafigura’s Global Press Office: +41 22 592 45 28 or email@example.com
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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 49.6 percent owned global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; 50 percent owned DT Group which specialises in logistics and trading; and Galena Asset Management. The Company is owned by around 600 of its 4,100 employees who work in 61 offices in 36 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD98.1 billion in 2016. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. Visit: www.trafigura.com