Trafigura Group Pte Ltd closes the refinancing and extension of its USD5.6 billion European Syndicated Revolving Credit Facilities

Singapore, 14 March 2024 – Trafigura Group Pte Ltd. (“Trafigura” or the “Company”), a market leader in the global commodities industry, announced the closing of its new 365-day European multi-currency syndicated revolving credit facilities (the “365-day ERCF”) totalling USD1.9 billion, as well as the extension and increase of its USD3.7 billion 3-year facility (“3-year ERCF”). The new 365-day ERCF, initially launched at USD1.5 billion, was substantially oversubscribed. 

Christophe Salmon, Trafigura Group Chief Financial Officer said: “The successful renewal of our flagship European revolving credit facility, which is a key pillar of our funding model, is a vote of confidence from our banking partners. We are maintaining the Company’s liquidity at record levels following this refinancing and extension process. As a result, Trafigura is well positioned to manage potential bouts of volatility, as commodity markets remain uncertain in the near-term. We are very grateful to the 54 banks who joined the facility and are supporting our future performance and commitment to sustainability across our global operations.” 

The 365-day ERCF will be used to refinance the maturing 365-day facility dated 7 March 2023, as well as for general corporate purposes. In addition, the Company decided to exercise the second extension option available on its 3-year ERCF dated 2 March 2022, extending the facility by 365 days to maintain a 3-year tenor, whilst simultaneously increasing the size of this tranche by USD160 million. 

In line with recent years, the Company structured these 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 three KPIs, with the progress towards each target evaluated on an annual basis and verified by an independent assurance provider. The KPIs relate to cutting operational greenhouse gas emissions (Scope 1 & 2), including a new intensity reduction target on Trafigura’s shipping business (Scope 1 & 3) starting in 2026; growing Trafigura’s renewable power portfolio; and implementation of the Voluntary Principles on Security and Human Rights at Trafigura’s operations. A penalty or discount on the margin will be applied, depending on the number of targets met each year. 

The 365-day ERCF was arranged by a group of seven Mandated Lead Arrangers & Bookrunners (“MLABs”), including Bank of China Limited, London Branch, ING Bank N.V., Société Générale, Sumitomo Mitsui Banking Corporation and UniCredit Bank GmbH as Active MLABs, and Coöperatieve Rabobank U.A. as Passive MLAB. Société Générale acted as Global Coordinator, while Sumitomo Mitsui Banking Corporation and Natixis acted as Sustainability Coordinators. In addition to the MLABs, 47 financial institutions joined the ERCF during syndication and/or extended their participation under the 3-year ERCF. 

ENDS

For further information please contact:

Trafigura’s Press Office: +41 (0) 22 592 4528 or media@trafigura.com 

About Trafigura

Trafigura is a leading commodities group, owned by its employees and founded 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. We deploy infrastructure, market expertise and our worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through H2Energy Europe and joint venture Nala Renewables.

The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, and our Impala Terminals joint venture. The Group employs over 12,000 people and is active in 156 countries.

Visit: www.trafigura.com