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Gunvor boosts European revolving credit facility

Energy trader Gunvor has enlarged the sustainability-linked revolving credit facility (RCF) for its European units to US$1.64bn amid elevated global energy prices.

The company says the facility, signed by the Gunvor Group in favour of its Dutch and Swiss entities, will be used for general purposes and to refinance the US$1.17bn tranche of last year’s European RCF, which was the first to be sustainability-linked, and the US$220mn three-year tranche of its 2020 facility.

This year’s RCF includes a US$1.37bn 364-day tranche with three one-year extension options and a second US$270mn tranche with one extension option. The RCF also includes a US$400mn accordion option.

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The RCF includes similar environmental, social and governance (ESG) targets as last year’s US$1.44bn facility, namely unidentified reductions in the trader’s scope 1 and 2 greenhouse gas emissions, which cover mainly direct emissions, and indirect scope 3 emissions reductions “associated with the improvement of energy efficiency of the shipping fleet”.

Two further targets are investments in non-fossil fuel projects and the assessment of the trader’s assets, joint ventures and suppliers against human rights principles.

“Given the context of the considerable market and geopolitical turbulence of the year, the extension and increase of the facility demonstrates the clear strength and resilience of the relationship the company has with its banking partners,” says Jeff Webster, Gunvor’s group chief financial officer.

One new bank, the Bank of China, joined the RCF this year while First Abu Dhabi Bank and MUFG dropped out.

Crédit Agricole, Credit Suisse, ING, Natixis, Rabobank, SMBC, Société Générale, UBS and UniCredit Bank remain as bookrunning mandated lead arrangers.

The same group, except for UBS, act as active bookrunners and Credit Suisse returns as facility and swingline agent. Natixis and Société Générale are the facility’s joint sustainability co-ordinators.

Arab Petroleum Investments Corporation remains as bookrunning mandated lead arranger while Emirates NBD, Citibank, Industrial and Commercial Bank of China and Mizuho Bank are senior mandated lead arrangers.

China Construction Bank Corporation and DZ Bank remain as mandated lead arrangers while Erste Group Bank and Sumitomo Mitsui Trust Bank are lead arrangers.

Arab Banking Corporation, Arab Bank (Switzerland), Bank of China, Banque de Commerce et de Placements, Commerzbank, Europe Arab Bank, Habib Bank, KfW Ipex-Bank, Mashreqbank and Raiffeisen Bank International are all arrangers.

Afrasia Bank, GarantiBank International and Union de Banques Arabes et Françaises are participants.

Webster adds: “We deeply appreciate the long-standing support of our core banking group and are pleased to welcome a new bank to the facility. The continued inclusion of sustainability KPIs further reinforces Gunvor’s commitment to advancing an ESG agenda in support of the energy transition.”

Earlier in November Gunvor USA announced it had closed a US$1.45bn borrowing base facility with 16 banks for general purposes and refinancing its previous US facility. The privately-held company, which trades crude oil, natural gas, refined products and other energy-related goods, reported an unaudited US$2bn gross profit for the first half of 2022.

 

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