Gunvor Group Ltd (“Gunvor” or the “Group”) has signed a USD 1.645 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 both existing and new banking partners, increasing the total amount of the facility from the previous year.
The RCF will be used for general corporate purposes, including the refinancing of the existing USD 1,175,000,000 364-day tranche of the 2021 European Revolving Credit Facilities Agreement, dated 10 November 2021, and the USD 220,000,000 3-year tranche of the 2020 European Revolving Credit Facilities Agreement dated 10 November 2020.
The Facility consists of two tranches, available to Gunvor International B.V. and Gunvor SA:
- Tranche A: USD 1.375 billion 364-day Revolving Credit Facility with three 364-day extension options
- Tranche B: USD 270 million 3-year Revolving Credit Facility with one 364-day extension option
The Facility, which has a USD 400 million Accordion Option, complements the existing USD 290 million 3-year tranche of the 2021 European Revolving Credit Facilities Agreement.
After the introduction of ESG KPIs in the Group’s European flagship corporate facility in 2021, the Group adopted sustainability KPIs in its Asian RCF facility earlier this year. Gunvor has a strong commitment to improve the environmental impact of its trading operations and to invest in sustainable commodities and businesses.
The structure is composed of four KPIs relating to the reduction of Scope 1 and 2 Greenhouse Gas (GHG) emissions; reduction of Scope 3 GHG emissions associated with the improvement of energy efficiency of the shipping fleet; the investment in non-fossil fuel projects; and the assessment of the Group’s assets, JVs, and suppliers against Human Rights principles. The KPIs have been readopted and extended in this year’s European Revolving Credit Facilities Agreement. Each KPI is annually tested and externally verified.
“Gunvor is delighted with the successful refinancing of its European revolving credit facility. Given the context of the considerable market and geopolitical turbulence of the year, the extension and increase of the facility demonstrates the clear strength and resilience of the relationship the company has with its banking partners,” said Jeff Webster, Group Chief Financial Officer of Gunvor Group. “We deeply appreciate the long-standing support of our core banking group and are pleased to welcome a new bank to the facility. The continued inclusion of sustainability KPIs further reinforces Gunvor’s commitment to advancing an ESG agenda in support of the Energy Transition refers to the global shift from traditional fossil fuel-based energy systems to a more sustainable, low-carbon, and environmentally friendly energy infrastructure. It encompasses the process of transitioning from... Read more.”
Coöperatieve Rabobank U.A., Credit Agricole Corporate and 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 remained Bookrunning Mandated Lead Arranger.
Emirates NBD PJSC, Citibank N.A., Jersey Branch, Industrial and Commercial Bank of China Limited, London Branch and Mizuho Bank are Senior Mandated Lead Arranger.
China Construction Bank Corporation, Beijing, Swiss Branch Zurich and DZ Bank AG remain/areas Mandated Lead Arrangers. Erste Group Bank AG and Sumitomo Mitsui Trust Bank, Limited (London Branch) are Lead Arrangers.
Arab Banking Corporation SA, Arab Bank (Switzerland) Ltd, Banque de Commerce et de Placements, Commerzbank Aktiengesellschaft, London Branch, Europe Arab Bank, Habib Bank AG, KfW Ipex-Bank Limited, Mashreqbank, Raiffeisen Bank International AG are Arrangers. Bank of China Ltd, London Branch joined as a new Arranger.
Afrasia Bank Limited, GarantiBank International N.V. and Union de Banques Arabes et Françaises remain as Participant.