Commodities trading firm Trafigura said today it had signed an USD3 billion loan agreement guaranteed by the government of Germany to secure gas supply.
The loan will support a new commitment by Trafigura to deliver substantial volumes of gas into the European gas grid, and ultimately into Germany, over the next four years.
It is a four-year loan, jointly arranged and underwritten by Deutsche Bank, and another international bank and syndicated to a number of participating banks. Over 25 banks participated in the successful syndication, which was 1.6 times oversubscribed, as the company says in a release.
The loan is secured, in part, by a guarantee under the Untied Financial Loan program of the government of Germany, acting through the German Export Credit Agency Euler Hermes Aktiengesellschaft. The program is a tool to secure the long-term delivery of strategic commodities to Germany.
Richard Holtum, Head of Gas and Power Trading for Trafigura, said that the team is “proud to be contributing to Europe’s energy security by supplying this significant volume of gas to Germany backed by our extensive portfolio and long-term US LNG contracts.”