Gunvor Group, comprising Gunvor SA, Gunvor Middle East DMCC and Gunvor Singapore Pte Ltd, (together “Gunvor” or the “Company”) has signed a US $420 mil. secured uncommitted borrowing base facility (the “Facility”). Gunvor launched the Facility at US $300 mil. and it was significantly oversubscribed, enabling the Company to increase it US $20 mil. over last year’s amount.
“Gunvor has become one of the region’s main traders and continues to expand with a focus on long-term investment in the Middle East,” said Tawfik Sadfi, Head of Structured Trade Finance. “We appreciate the increasing support we’ve seen from our banking partners for our growth strategy.”
The Facility was arranged by ABN AMRO Bank N.V. (the “Bookrunner and Mandated Lead Arranger”). Arab Petroleum Investments Corporation (APICORP), Gulf International Bank B.S.C. and Mashreqbank psc have joined the Facilities as Mandated Lead Arrangers (the “MLAs”). Additionally, Emirates NBD joined the Facility with a top tier ticket through the accordion feature (together with the Bookrunner and MLAs the “Mandated Lead Arranger Group”).
The Facility, which is guaranteed by the Company, will be used to finance working capital needs in respect of purchase of oil products, margin calls with the hedge providers and receivables related to physical transactions in the Middle-East region.
The deal structure is the same as last year with two tranches:
· Tranche A: US$ 105 mil. secured uncommitted loan facility
· Tranche B: US$ 315 mil. secured uncommitted bilateral facilities
This Facility is part of Gunvor’s global geographic expansion and its diversification of financing to support new investments and existing operations. Gunvor first opened a Middle East representative office in 2009 and formalized its presence in 2010 through the establishment of Gunvor Middle East DMCC, located in Dubai, United Arab Emirates.
The participating banks in the Facility are as follows:
Mandated Lead Arranger and Bookrunner
ABN AMRO Bank N.V.
Mandated Lead Arrangers
Arab Petroleum Investments Corporation (APICORP)
Gulf International Bank B.S.C.
Emirates NBD PJSC, London Branch
Arab Bank (Switzerland) Ltd.
Nedbank Limited, London Branch