Gunvor Group (“Gunvor” or “the Company”) has successfully closed a new EUR 300 million financing (the “Facility”), which consists of a syndicated, pan-European Natural gas is a fossil fuel composed mainly of methane, a hydrocarbon compound. It is formed deep beneath the Earth's surface as a result of the decomposition of organic matter... Read more repo facility to cover multiple jurisdictions in Europe with a shared security package. It will be used to support Gunvor’s growing natural gas activity across Europe, where the company is already one of the largest physical natural gas traders.
The innovative financing allows Gunvor’s banking partners to participate in a natural gas financing structure with access to a robust security package based on a true sale transaction through a security trust and a segregated account to collect sales proceeds. This uniquely structured trade finance solution gives Gunvor the ability to secure, scale, and diversify access to competitive financing.
“Financing European natural gas trading is challenging for trading companies, given the inherently complex nature of its logistics, which consist of pipeline and storage capacities, as well as the regulatory environment, which operates across multiple jurisdictions. This results in a situation in which there is no common framework to tackle ownership rights or pledges over fungible goods. In working together with our banking partners, we have overcome these challenges to establish an innovative financing structure with competitive pricing,” said Tawfik Sadfi, Gunvor’s Head of Origination and Structured Trade Finance.
The facility was structured by Coöperatieve Rabobank U.A. (Rabobank) with its commodity trading subsidiary Brightfield Trading B.V. acting as “Grantor” and Gunvor acting as “Originator”. Rabobank will act as Coordinating Agent and Trustee of the facility, and Gunvor will act as a logistic agent. Rabobank also served as Bookrunner and Mandated Lead Arranger, as well as Coordinator and Security Agent. Mandated Lead Arrangers include CA Indosuez (Switzerland) SA, ING Bank N.V Amsterdam, Geneva branch and UBS Switzerland AG.
“Rabobank is delighted to have an excellent partnership with Gunvor which has resulted in an innovative working capital finance solution for its European natural gas activities that is flexible, scalable and cost competitive. Rabobank is committed to support its clients in the Energy Transition refers to the global shift from traditional fossil-fuel based energy systems to more sustainable and renewable sources of energy. It involves the gradual transformation of the energy sector,... Read more and has therefore developed a strong expertise in natural gas repo financing. In a difficult banking environment during 2020, the execution of this first ever syndicated commodity repo structure—a legal novelty supported by our lead counsel Norton Rose Fulbright LLP—is an outstanding achievement and something to be very proud of for all parties that contributed to this success,” said Peter Zonneveld, Rabobank’s Global Head of Structured Inventory Products.
Gunvor is a leading participant in European and U.S. physical natural gas markets, performing wholesale trading with utilities and industrial customers. To support activities, Gunvor maintains a portfolio of investments—as well as medium- to long-term contracts and partnerships—in strategic assets, including in transportation, pipelines, storage, and Regasification is the process of converting liquefied natural gas (LNG) back into its gaseous form by raising its temperature. LNG is transported and stored in a condensed state for convenience... Read more. Gunvor’s global market reach and advanced analytics enable the company to develop specialized transactions for customers, supported by top-tier Risk management refers to the process of identifying, assessing, and prioritizing potential risks in order to minimize their negative impact on an organization or individual. In the energy commodities trading... Read more and trade finance services. Gunvor’s team also draws on the expertise of the company’s liquefied natural gas (LNG) team, the largest independent LNG trader worldwide, and is presently developing power trading to further complement operations.
Other recent Gunvor financings:
Gunvor launches new US $540 million Biodiesel is a renewable and cleaner-burning alternative fuel made from biomass sources, such as vegetable oils or animal fats. It is produced through a chemical reaction called transesterification, which converts... Read more borrowing base
GENEVA (21 November 2023) – Gunvor Group Ltd (“Gunvor” or the “Group”) has signed a US $1.885 billion sustainability-linked, multi-currency 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 amount of the facility […]
HOUSTON (8 November 2023) – Gunvor USA LLC (“Gunvor USA” or “the Company”), an indirect, wholly-owned subsidiary of Gunvor Group Ltd (“Gunvor” or “the Group”), has successfully closed the syndication of its US $1.60 billion uncommitted borrowing base credit facility (“the Facility”). The Facility includes a US $1.28 billion one-year tranche, a US $320 million […]
Four new banks join existing lending group Gunvor Group Ltd (“Gunvor” or the “Group”) has refinanced and increased its Off Balance Sheet Instruments Revolving Credit Facility (“Facility”) to US $1.37 billion, up from US $990 million in 2022, in favour of Gunvor SA and Gunvor International B.V. The Facility received strong support from Gunvor’s existing […]
Gunvor Singapore Pte. Ltd. (the “Borrower”), a wholly-owned subsidiary of Gunvor Group Ltd (“Gunvor” or the “Company”), has closed a US $1.035 billion sustainability-linked, syndicated revolving credit facility (the “Facility”) on 16 June 2023. The Facility, which was launched initially at US $550 million in April 2023, benefited from strong support from a total of […]
Celsius Tankers (“Celsius”) expand their partnership with Gunvor Group Ltd (“Gunvor”) in the liquefied natural gasNatural gas is a fossil fuel composed mainly of methane, a hydrocarbon compound. It is formed deep beneath the Earth's surface as a result of the decomposition of organic matter... Read more (LNG) sector with the chartering of four highly […]
Gunvor Singapore Pte. Ltd. (“Gunvor Singapore”), a wholly-owned subsidiary of Gunvor Group Ltd (“Gunvor” or the “Company”), has closed a US $600 million borrowing base facility (“Facility”) to support the working capital needs of its Asian fuel oil business.
Chesapeake Energy Corporation (NASDAQ: CHK) and Gunvor Group Ltd today announced that Gunvor Singapore Pte Ltd (“Gunvor”) has entered into a Heads of Agreement (“HOA”) with Chesapeake Energy Marketing L.L.C. (“Chesapeake”) a subsidiary of Chesapeake Energy Corporation. Under the HOA, Chesapeake will supply up to 2 million tonnes of LNG per annum to Gunvor with […]
GENEVA (27 February 2023) – Gunvor Group, a leading global physical energy trading company, has signed a new uncommitted borrowing base facility (the “Facility”) to support trading activities on the European Union Emissions Trading System (EU ETS). The Facility, which includes a EUR 100 million accordion feature, is scalable and secured, and will cover all […]
Gunvor Group, a leading independent trader of liquefied natural gasNatural gas is a fossil fuel composed mainly of methane, a hydrocarbon compound. It is formed deep beneath the Earth's surface as a result of the decomposition of organic matter... Read more (LNG) worldwide, has renewed its syndicated borrowing base facility (the “Facility”) to support the […]
Natural gasNatural gas is a fossil fuel composed mainly of methane, a hydrocarbon compound. It is formed deep beneath the Earth's surface as a result of the decomposition of organic matter... Read more facility sees doubling of support from financing partners Gunvor Group (“Gunvor” or “the Company”) has successfully closed a EUR 570 million working […]