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Banks demonstrate strong support for feedstocksDescription: Feedstocks refer to raw materials or substances that are used as inputs in the production of various products, such as fuels, chemicals, and materials. In the context of energy... Read more that meet European Green Deal

Gunvor Group (“Gunvor”, “the Company”) has successfully closed a new US $540 million borrowing base facility (the “Facility”) to support the Company’s biodieselBiodiesel 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 trading activity. The Facility drew strong support among Gunvor’s banking partners, which align with its strategy to promote cleaner products with greener feedstock components complying with EU climate targets to reduce greenhouse gas emissionsDescription: Greenhouse gas emissions refer to the release of gases into the Earth's atmosphere that contribute to the greenhouse effect and ultimately result in climate change. These gases trap heat... Read more. The syndication launched at US $400 million and was oversubscribed to US $595 million.

The Facility is structured around Gunvor’s biofuel inventory positions located at both the origin and destinations countries, including the Company’s two biofuel processing plants in Spain. Imports are made in strict conformity with the EU regulation applicable on biofuel products. The Facility’s pricing is competitive and reinforces the Group’s funding resources with its growing biofuel activity.

“BiofuelsBiofuels are a type of renewable energy derived from biological sources, such as plants and animal waste. These fuels are used as an alternative to fossil fuels, with the aim... Read more, along with other ‘transitional’ commodities, are increasingly important to Gunvor’s trading mix,” said Muriel Schwab, CFO Gunvor Group. “Our banking partners have expressed considerable support for trading cleaner products as Gunvor pursues its Energy TransitionEnergy 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 strategy.”

Gunvor’s Biofuel trading desk has been active since 2009 and is involved in the entire supply chainDefinition: A supply chain refers to the entire process involved in the production, distribution, and delivery of goods or services, from the extraction of raw materials to the final consumption... Read more of carbon reduction in the fuel sector, including risk managementRisk 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 logistics. On a global basis, Gunvor sources a variety of feedstocks for the biofuel industry, such as vegetable oil, waste residuesWaste residues, also known as residual waste or residual materials, refer to the byproducts or leftovers that remain after the completion of a process or activity. In the energy commodities... Read more, and by-products, and then processes them in the Company’s own facilities to produce low CO2-emitting biofuels.

Gunvor operates several blending facilities in Asia, the United States, and throughout Europe, where the company prepares biofuels for end-consumers across the world. Gunvor also trades CO2 tickets to complement the CO2 reduction strategy of the company. Gunvor maintains two wholly-owned biodiesel plants in Spain.

At the end of first-half 2020, approximately 50% of Gunvor’s total trading volumes consisted of “transitional” commodities, including biofuels, 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, and LNG, as defined by the EU taxonomy for sustainable activities.

The Bookrunners for the deal were Credit Agricole and Rabobank, which served respectively as Documentary Agent and Facility / Security Agent. Participating banks also included:

Bookrunner and Mandated Lead Arranger

• CA Indosuez (Switzerland) SA
• Coöperatieve Rabobank UA

Mandated Lead Arranger

• Citibank N.A
• Unicredit bank AG

Lead Arranger

• Mizuho Bank Europe N.V
• UBS Switzerland AG

Arranger

• Société Générale
• Sumitomo Mitsui Trust Bank, Limited (London Branch)