Trafigura consolidates its position on the commodities market

Renewal of credit facilities and extension of financings

Trafigura Group Pte Ltd (“Trafigura” or the “Company”), a global commodities trading company, has recently successfully completed the renewal of its 365-day European syndicated revolving credit facilities (the “365-day ERCF”) totalling USD 1.9 billion and the extension and increase of its USD 3.7 billion 3-year facility (the “3-year ERCF”).

Excess demand and confidence of banking partners

Initially set at USD 1.5 billion, the 365-day facility met with strong excess demand. Christophe Salmon, CFO of Trafigura Group, said: “The successful renewal of our main European revolving credit facility, which is a key pillar of our financing model, demonstrates the confidence of our banking partners. We are maintaining the company’s liquidity at record levels following this refinancing and extension process.”

Commitment to sustainability

The Company has opted for Sustainability Linked Loans (“SLLs”), linked to specific Key Performance Indicators (“KPIs”) to reinforce its sustainability initiatives. These KPIs include the reduction of greenhouse gas emissions, the expansion of the renewable energy portfolio and the adoption of voluntary principles on safety and human rights.

Financing structure and participation of financial institutions

The 365-day facility was orchestrated by a consortium of seven Mandated Lead Arrangers & Bookrunners (“MLABs”), with the participation of 47 other financial institutions. Société Générale was appointed Global Coordinator, while Sumitomo Mitsui Banking Corporation and Natixis were appointed Sustainability Coordinators.

Outlook

This initiative demonstrates Trafigura’s continued commitment to sustainability and its ability to maintain a strong position in the commodities market in an uncertain global economic environment.

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Sources: 

https://www.trafigura.com/news-and-insights/press-releases/2019/trafigura-group-pte-ltd-signs-usd205-billion-european-multicurrency-syndicated-revolving-credit-facility/

https://www.tradefinanceglobal.com/posts/trafigura-raises-1-9b-in-new-credit-facilities-eyes-expansion/