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Gunvor closes us $1.565 billion lng syndicated borrowing base facility

11 January 2023

Gunvor Group, a leading independent trader of liquefied natural gas (LNG) worldwide, has renewed its syndicated borrowing base facility (the “Facility”) to support the working capital needs of the company’s growing LNG activities globally. The syndication launched at US $1.2 billion and was oversubscribed, with strong appetite from new lenders, including more than 20 banks from Europe, the Middle East, Africa, and Asia. Six new banks joined. The Facility has been correspondingly increased from US $1.135 billion to US $1.565 billion.

The Facility, which was inaugurated last year, has been structured around Gunvor’s global LNG trade flows, including shipping activities, and will finance physical and derivative positions. As a part of the Facility, Gunvor has committed to CO2 carbon emissions reporting to establish transparency for the carbon footprint of the company’s LNG value chain.

“The very strong interest this financing has received from such a diversified pool of lenders reflects the global nature of Gunvor’s LNG activity,” said Tawfik Sadfi, Head of Structured Trade Finance at Gunvor Group. “LNG has secured a place as strategic commodity for both the Energy Transition and energy security.”

“The successful refinancing and increase of this Facility underscores the extent to which a growing number of banks recognize LNG as part of the mainstream commodities market,” said Gertjan Lagerwerf, Director Rabobank Trade & Commodity Finance – Energy. “LNG has an important role in assuring energy security for many countries amid the current challenging geopolitical circumstances.”

Ludivine Labarre, Global Head of Trade Commodity Finance at Societe Generale, added: “This landmark LNG borrowing base Facility embodies the long-term strategic move of Gunvor to support LNG transitional commodities contributing to both low-carbon future and energy security. Gunvor’s clearly defined trading strategy and business model, hand-in-hand with its sustainability commitments, continue to attract market confidence while paving the way for new ESG commitments linked to LNG activity.”

Gunvor continues to uphold its commitments to define and communicate all greenhouse gas emissions related to its LNG trades. The latest information is published in the company’s annual Sustainability & Ethics Report. Gunvor has previously announced commitments in the areas of environment, social, and governance (ESG) targeting a 40% reduction in the company’s Scope 1 and 2 emissions by 2025. For existing and new trading, dedicated programs are being established to manage emissions and environmental impact, while taking into account human rights considerations, in line with Gunvor’s commitment to the UNGPs on Business & Human Rights. Tracking and reporting of scope 1, 2, and 3 emissions related to the trading of LNG adds further to those commitments.

Coöperatieve Rabobank U.A acted as the Lead Coordinator, Facility and Security Agent and Société Générale as Documentary Agent of the facility.

Bookrunner & Mandated Lead Arranger

  • Coöperatieve Rabobank U.A
  • DBS Bank Ltd., London Branch (Singapore branch to add)
  • Oversea-Chinese Banking Corporation Limited
  • Natixis, Singapore Branch
  • Société Générale

Senior Mandated Lead Arranger

  • Abu Dhabi Commercial Bank PJSC
  • Industrial and Commercial Bank of China Limited, London Branch
  • ING Bank N.V., Amsterdam, Lancy / Geneva Branch
  • Qatar National Bank (Q.P.S.C.) Paris Branch
  • Mizuho Bank, Ltd.

Mandated Lead Arranger

  • Bank of China Limited
  • CA Indosuez (Switzerland) SA
  • Commercial Bank of Dubai PSC
  • SMBC Bank International plc

Arranger

  • Afrasia Bank Limited
  • Erste Group Bank AG
  • First Abu Dhabi Bank PJSC
  • Mashreqbank psc
  • Sumitomo Mitsui Trust Bank, Limited (London Branch)
  • The National Bank of Ras Al Khaimah (P.S.C)