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Gunvor closes first sustainability-linked US $1.455 billion European RCF

Gunvor Group Ltd (“Gunvor” or the “Group”) has signed a USD 1.455 billion sustainability-linked revolving credit facility (“RCF” or “Facility”) in favour of Gunvor International B.V. and Gunvor SA.

The Facility received strong support from Gunvor’s banking partners and attracted new banks, increasing the total facility amount from the previous year. The RCF will be used for general corporate purposes, including the refinancing of the USD 1.050 billion 364-day tranche of the 2020 European Revolving Credit Facilities Agreement and the USD 330 million 3-year tranche of the 2018 European Revolving Credit Facilities Agreement, amended in November 2019.

The Facility consists of two tranches, available to Gunvor International B.V. and Gunvor SA:

  • Tranche A: USD 1.175 billion 364-day Revolving Credit Facility with three 364-day extension options
  • Tranche B: USD 280 million 3-year Revolving Credit Facility with one 364-day extension option

The Facility has USD 400 million Accordion Option. The Facility complements the existing USD 220 million 3-year tranche of the 2020 European Revolving Credit Facilities Agreement.

For the first time, Gunvor introduced ESG KPIs in the Group’s flagship corporate facility, demonstrating Gunvor’s strong commitment to improve the environmental impact of its current trading operations and invest into new sustainable commodities and businesses.

The new structure is composed of four KPIs that will be annually tested and externally verified, relating to the reduction of scope 1 and 2 emissions; the improvement of energy efficiency of the shipping fleet and reduction of scope 3 emissions; the investment into non fossil fuel projects; and the assessment of the Group’s assets and JVs against Human Right principles.

“Gunvor is very pleased with the strong, continued support of our banking partners, whose confidence in our strategy and business model is clear,” said Gunvor Group CFO Muriel Schwab. “In the last year, Gunvor has further developed our ESG commitments, embedding our sustainability KPIs in our financings—such as targeting a 40% reduction in Scope 1 and 2 emissions by 2025, setting investment targets in renewables and alternative fuels, and assessing our joint-ventures on human rights. The sustainability KPIs embedded in our financing are fully aligned with those commitments reinforcing Gunvor’s resilient funding model and paving the way for further global growth ahead.”

The Group maintains over USD 18 billion in financing lines, with main facilities that include Gunvor Singapore’s USD 850 million revolving credit facility and Gunvor USA’s USD 1.33 billion borrowing base facility. The Group further diversified its financing into areas such as sustainability-linked borrowing base facilities and recently completed an unrated bond issuance on the Irish Stock Exchange.

Coöperatieve Rabobank U.A., Credit Agricole Corporate & Investment Bank, Credit Suisse (Switzerland) Ltd., ING Bank N.V., Natixis, SMBC Bank International Plc, Société Générale, UBS Switzerland AG and UniCredit Bank AG (together the “Bookrunning Mandated Lead Arrangers”) were mandated to arrange the Facility. Coöperatieve Rabobank U.A., Credit Agricole Corporate & Investment Bank, ING Bank N.V., Natixis, SMBC Bank International Plc, Société Générale and UniCredit Bank AG acted as Active Bookrunners while Credit Suisse (Switzerland) Ltd is Facility and Swingline Agent. Natixis and Société Générale acted as Joint Sustainability Coordinators of the Facility.

Arab Petroleum Investments Corporation (Apicorp) – Foreign Branch joined during syndication as a Bookrunning Mandated Lead Arranger. Emirates NBD PJSC, Mizuho Bank Ltd, Citibank N.A., Jersey Branch, and Industrial and Commercial Bank of China Limited, London Branch joined as Senior Mandated Lead Arranger.

China Construction Bank Corporation, Beijing, Swiss Branch Zurich and DZ Bank AG joined as Mandated Lead Arrangers. Erste Bank AG, MUFG and Sumitomo Mitsui Trust Bank, Limited (London Branch) joined as Lead Arrangers.

ABC International Bank Plc Paris Branch, Arab Bank (Switzerland) Ltd, Banque de Commerce et de Placements, Commerzbank Aktiengesellschaft, London Branch, Europe Arab Bank, First Abu Dhabi Bank PJSC, GarantiBank International N.V., Habib Bank AG, KfW Ipex-Bank Limited, Mashreqbank and Raiffeisen Bank International AG joined as Arrangers.

Afrasia Bank Limited and Union de Banques Arabes et Françaises joined as Participants.