Trafigura, a market leader in the global commodities industry, announced the closing of its new Syndicated Revolving Credit Facility (“RCF”) and Term Loan Facilities (the “Facilities”) at approximately USD3.2 billion-equivalent. The Facilities were substantially oversubscribed and upsized from their initial launch amount of USD2.0 billion-equivalent, with 38 financial institutions participating in the transaction, including five new lenders.
The new Facilities comprise: a 365-day USD revolving credit facility (USD705 million); a 1-year CNH term loan facility (approximately USD1,289 million-equivalent); and a 3-year USD term loan facility (USD1,236 million). The new Facilities will be used to refinance the maturing 3-year term loan tranche from 2021 and the maturing 1-year USD and 1-year CNH tranches from 2023, as well as for general corporate purposes.
Stephan Jansma, Group Chief Financial Officer, Trafigura, said: “We have successfully refinanced our unsecured syndicated facilities with more than USD600 million in additional liquidity and a number of new lenders. Once again we appreciate the strong support we received from banking markets across Asia Pacific and the Middle East, with particularly strong support from Chinese banks. Our funding position leaves us very well prepared to serve our customers in all market conditions.”
In line with the previous years, the Facilities were structured as sustainability-linked loans (“SLL”). As with Trafigura’s European RCF closed in March 2024, this renewed SLL structure includes three key performance indicators (“KPIs”) to improve Trafigura’s sustainability performance, aligned with material issues for its business. The progress towards each target will be evaluated on an annual basis and verified by an independent assurance provider. A penalty or discount on the margin will be applied, depending on the number of targets met each year.
Trafigura mandated Bank of Communications Shanghai Putuo Sub-branch, China Construction Bank Shanghai Pudong Sub-branch, China Everbright Bank Co., Ltd., Hong Kong Branch, DBS Bank Ltd. (“DBS”), First Abu Dhabi Bank PJSC (“FAB”), Industrial and Commercial Bank of China Limited, London Branch, Oversea-Chinese Banking Corporation Limited and Standard Chartered Bank (Singapore) Limited (“SCB”) as the Mandated Lead Arrangers and Bookrunners. DBS also acted as Global Coordinator of the transaction. FAB and SCB acted as Sustainability Coordinators.
The Export-Import Bank of China and China Merchants Bank Co., Ltd Singapore Branch were the Mandated Lead Arrangers and Bookrunners in connection with the CNH syndication of the Facilities.