Natural gas facility sees doubling of support from financing partners
Gunvor Group (“Gunvor” or “the Company”) has successfully closed a EUR 570 million working capital transaction (the “Facility”), which consists of a syndicated, pan-European natural gas repo facility covering multiple jurisdictions in Europe with a shared security package. Eight banks supported the Facility, including four new lenders, enabling the arrangement to expand to cover eight eligible natural gas storage locations, up from three.
“Thanks to a doubling of support from our banking partners, the flexibility and scope of this Facility increases considerably,” said Milos Spasic, Gunvor’s Head of STF Energy EMEA & Latam. “We’re now able to cover an expanded number of European storage facilities at a critical time in the market. This Facility remains unique to the market.”
The renewal of the Facility allows Gunvor’s banking partners to participate in a natural gas financing structure with access to a robust security package based on a true sale transaction. This uniquely structured trade finance solution gives Gunvor the ability to secure, scale, and diversify access to competitive financing.
The Facility was structured by Coöperatieve Rabobank U.A. (Rabobank) with its commodity trading subsidiary Brightfield Trading B.V. acting as “Grantor” and Gunvor acting as “Originator” and logistic agent. Rabobank acts as Coordinating Agent and Trustee of the facility as well as lead Participant. Other participants include CA Indosuez (Switzerland) SA; ING Bank N.V Amsterdam, Geneva branch; UBS Switzerland AG; Raiffeisen Bank International AG; Erste Group Bank AG; Die Sparkasse Bremen AG; and Mizuho Bank, Ltd.
“Two years ago, Gunvor and Rabobank launched this transaction with the ambition to create an innovative working capital finance solution for Gunvor’s European natural gas activities that would be flexible, scalable, and cost competitive. Rabobank is delighted that we have been able to build on our excellent partnership to successfully expand the structure in both scale and in scope. Rabobank is committed to support its clients in the energy transition and has therefore developed a strong expertise in natural gas repo financing—supported by our lead counsel Norton Rose Fulbright LLP. Scaling up this first ever syndicated commodity repo structure during times of unprecedented market volatility is an outstanding achievement that all parties involved can be very proud of,” said Robin de Milliano, Senior Product Manager with Rabobank’s Structured Inventory Products.
About Gunvor Group
Gunvor is a leading participant in European and U.S. physical natural gas markets, performing wholesale trading with utilities and industrial customers. To support activities, Gunvor maintains a portfolio of investments—as well as medium- and long-term contracts and partnerships—in strategic assets, including in transportation, pipelines, storage, and regasification. Gunvor’s global market reach and advanced analytics enable the company to develop specialized transactions for customers, supported by top-tier risk management and trade finance services. Gunvor’s team also draws on the expertise of the company’s liquefied natural gas (LNG) team, the largest independent LNG trader worldwide, and is presently developing power trading to further complement operations. For more information, visit GunvorGroup.com.
About Rabobank Group
Rabobank is an international financial services provider operating on the basis of cooperative principles. It offers retail banking, wholesale banking, private banking, leasing and real estate services. As a cooperative bank, Rabobank puts customers’ interests first in its services. Rabobank is committed to being a leading customer-focused cooperative bank in the Netherlands and a leading food and agri bank worldwide. Rabobank employed 43,272 per 31 December 2020. Rabobank Group is active in 38 countries. For more information about the Rabobank Group go to www.rabobank.com.