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Gunvor secures us$912 million sustainability-linked asia rcf with oversubscription

SINGAPORE (23 June 2022) – Gunvor Singapore Pte. Ltd. (the “Borrower”), a wholly-owned subsidiary of Gunvor Group Ltd (“Gunvor” or the “Company”), has closed a US$912 million sustainability-linked, syndicated revolving credit facility (the “Facility”) on 20 June 2022.

The Facility, which was launched initially at US$500 million in April 2022, benefited from strong support from a total of 23 banks and closed significantly oversubscribed by over 82 per cent, increasing the total facility amount from the previous year. The Borrower may look to upsize the Facility further via an up to US$200 million accordion feature, which was structured to accommodate banks that are interested to join the Facility after June 2022.

The 364-day Facility, which is guaranteed by the Company and includes an extension option to extend by up to 12 months, is intended to refinance the Borrower’s existing indebtedness, and for general corporate and working capital requirements. This is also the first-time for the Borrower to implement a sustainability-linked loan structure, including ambitious ESG Key Performance Indicators covering climate, energy transition and human rights, which will be tested annually and verified externally, to showcase Gunvor’s commitment to sustainability. The KPIs relate to the reduction of scope 1 and 2 emissions; the improvement of energy efficiency of the shipping fleet and reduction of scope 3 emissions; and the assessment of the Group’s assets and JVs against Human Right principles.

“We are grateful for the tremendous support from our banking partners during this extremely challenging period of record volatility and uncertainty” said Regional CFO Jean Rohr. “Our partners found confidence in our strong financial results, solid liquidity management and commitment to the energy transition”.

China CITIC Bank International Limited, DBS Bank Ltd., and Natixis, Singapore Branch are the active bookrunning mandated lead arrangers for the Facility, with Abu Dhabi Commercial Bank PJSC, Agricultural Bank of China Limited, Singapore Branch, Emirates NBD Bank (P.J.S.C), Singapore Branch and MUFG Bank, Ltd., Singapore Branch as the bookrunning mandated lead arrangers.

Coöperatieve Rabobank U.A., Singapore Branch, First Abu Dhabi Bank P.J.S.C., Singapore Branch, Crédit Agricole Corporate and Investment Bank, Singapore Branch, ING Bank N.V., Singapore Branch are senior mandated lead arrangers, while Oversea-Chinese Banking Corporation Limited, Credit Suisse (Switzerland) Ltd., UBS AG, Singapore Branch, Mizuho Bank, Ltd., SOCIÉTÉ GÉNÉRALE, a public limited company incorporated in France, acting through its Hong Kong branch are mandated lead arrangers.

Furthermore, Krung Thai Bank Public Company Limited, Singapore Branch, Sumitomo Mitsui Banking Corporation Singapore Branch joined the Facility as lead arrangers, while Sumitomo Mitsui Trust Bank, Limited Singapore Branch, Banque Internationale de Commerce-BRED (Suisse) SA, National Bank of Fujairah PJSC, United Overseas Bank Limited and Commerzbank Aktiengesellschaft, Singapore Branch joined as arrangers.

The Facility supports Gunvor’s established and continuing global growth strategy, which consists of geographic expansion, product diversification and investments along the value chain.