Swiss energy commodities trader Gunvor’s subsidiary in Singapore has clinched a credit facility to support the general corporate and working capital needs. The sustainability-linked, syndicated revolving credit facility is worth $1.32bn, Gunvor said.
The facility comes with the commitment to reduce emissions associated with the improvement of energy efficiency of the shipping fleet.
“The successful renewal of our Asian RCF is the result of the deep collaboration between Gunvor and its banking partners,” highlighted Jean Rohr, Gunvor’s regional chief financial officer for Asia-Pacific.
The Geneva-headquartered company says the facility, which was launched initially at $750m in April 2024, benefited from strong support from Gunvor’s banking partners and attracted new banks, and closed significantly oversubscribed by over 60%, increasing the total facility amount from the previous year.
Its subsidiary Gunvor Singapore has further upsized the facility by $120m via an accordion feature, which was structured to accommodate two banks that joined the facility after signing, bringing the total facility amount to $1.32b as of 12 July 2024.
The 364-day facility, which is guaranteed by the company and includes two 12-month extension options, will be used for general corporate and working capital purposes, including the refinancing of the subsidiary’s existing $1.035bn 2023 Asia sustainability-linked revolving credit facility.
As a part of the credit facility, Gunvor has committed to improve the environmental impact of its trading operations and to invest in sustainable commodities and businesses.
The facility comes with KPR, a key performance indicator, which is linked to the reduction of greenhouse Gas (GHG) emissions and emissions associated with the improvement of energy efficiency of the shipping fleet.
The indicator, which is tested annually and verified externally, is also related to the investment in non-fossil fuel projects; and the assessment of the group’s assets, JVs and suppliers against human rights principles.
“The strong relationship we have with our core financing partners, enhanced by the welcome addition of several new lenders into our upsized anchor facility, demonstrates their support for the group’s strong performance and positive outlook,” added Jean Rohr.
CERAWEEK // Gunvor's team is @CERAWeek discussing the future of #energy amidst the numerous risks facing the world today. Our company's Chairman Torbjörn Törnqvist addressed the growing importance of #LNG, the complexity of #hydrogen as a tradable commodity, the environmental… pic.twitter.com/9m1nfrCVpU
— Gunvor Group (@Gunvor) March 19, 2024
