Moving Energy
Forward
Finance
Managing risk and liquidityLiquidity is a term commonly used in the energy commodities trading sector, referring to the extent to which a specific market or asset can be easily bought or sold without... Read more is at the core of Gunvor’s business. From the company’s inception, Gunvor has been successful in building long-term relationships in the financial sector and diversifying its banking partnerships. Today, we work with more than 75 leading global financial institutions.
As a growing business with interests throughout the world, Gunvor has always sought to establish local partnerships for its investments, such as establishing an independent revolving credit facility specifically for Asia, and creating borrowing basesBorrowing bases, in the context of energy commodities trading, refer to the valuation method used by lenders to determine the amount of credit extended to a borrower, primarily based on... Read more in the Middle East and the Americas to finance trading operations in those regions.
Such an approach has benefited our year-on-year profitability and enabled us to increase credit lines even through the global financial crisisGlobal financial crisis refers to a period of severe economic turmoil experienced by the global financial system. It is characterized by a widespread collapse in financial markets, entailing a sharp... Read more. Our culture is one of financial prudence. We maintain a strong liquidity position and our assets are optimally financed.
Managing Volatility
Gunvor performs position monitoring and stress tests for extreme market movements on a daily basis and constantly assesses the size of its physical and hedge book and the associated liquidity.
Gunvor further ensures that adequate liquidity is available to respond to margin callsMargin calls are notifications issued by brokers or exchanges to their clients, typically in the realm of investment or trading, when the value of their margin account falls below a... Read more related to the Group’s paper positionsPaper positions refer to the virtual or hypothetical positions that traders hold in financial markets, specifically in commodities, without physically buying or selling the underlying assets. These positions are established... Read more (hedgingHedging is a risk management strategy commonly utilized in the energy commodities trading sector to minimize exposure to price fluctuations. It involves taking offsetting positions in financial instruments or physical... Read more its physical business). This occurs through a variety of funding solutions that include bilateral funding facilities, syndicated trade finance facilitiesSyndicated trade finance facilities refer to financial arrangements or credit lines that are provided to support international trade transactions. These facilities are commonly utilized by exporters, importers, and other parties... Read more, and syndicated revolving credit facilities.
Gunvor is in constant dialogue with its global financing partners to adjust available funding facilities to the needs of our business.
As a growing business with interests throughout the world, Gunvor has always sought to establish local partnerships for its investments
Financing Types
Short-term transactional, self-liquidating, and secured credit facilities:
Bilateral transactional credit lines and borrowing base financings to finance daily trade activities and meet its liquidity requirements. Such facilities are self-liquidatingSelf-liquidating, in the context of commodities trading, refers to a financing arrangement in which the proceeds from the sale of a commodity are used to repay the loan or credit... Read more and are therefore directly repaid by the financed transaction.
Short-term and long-term unsecured revolving facilities:
Primarily the company’s Asian and European revolving credit facilities, which are used to fund general corporate needs, bridge financing for new investments, as well as certain asset classes.
Secured term debt facilities:
Project finance, acquisition loans and hybrid financing to meet specific long-term financing needs for fixed assets.
Investor Contact
In September 2021, Gunvor Group Ltd issued US $300 million Senior Unsecured RegS Notes, priced at 6.250 percent, with a 5-year tenor and maturity date of 2026. For more information:
Latest Financial News
Gunvor secures US $1.885 billion sustainability-linked, multi-currency revolving credit facility
GENEVA (21 November 2023) – Gunvor Group Ltd (“Gunvor” or the “Group”) has signed a US $1.885 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 Gunvor’s banking partners and attracted new banks, increasing the total amount of the facility […]
Gunvor USA successfully increases borrowing base facility to US $1.6 billion
HOUSTON (8 November 2023) – Gunvor USA LLC (“Gunvor USA” or “the Company”), an indirect, wholly-owned subsidiary of Gunvor Group Ltd (“Gunvor” or “the Group”), has successfully closed the syndication of its US $1.60 billion uncommitted borrowing base credit facility (“the Facility”). The Facility includes a US $1.28 billion one-year tranche, a US $320 million […]
Gunvor Group Results 2022
Following a year in which the global economy began its recovery from the Covid-19 pandemic, 2022 commenced with commodities markets in tight supply and inflation rising throughout the world. With the invasion of Ukraine by Russia at the end of February, commodities prices spiked to new levels in response to unprecedented market uncertainty and a series of economic sanctionsEconomic sanctions are measures imposed by governments or international organizations to restrict trade, financial transactions, or other economic activities with a targeted country, organization, or individual. These sanctions are typically... Read more put in place by Western governments.
Gunvor successfully increases OBSI facility to US $1.37 billion
Four new banks join existing lending group Gunvor Group Ltd (“Gunvor” or the “Group”) has refinanced and increased its Off Balance Sheet Instruments Revolving Credit Facility (“Facility”) to US $1.37 billion, up from US $990 million in 2022, in favour of Gunvor SA and Gunvor International B.V. The Facility received strong support from Gunvor’s existing […]
Gunvor secures US $1.125 billion sustainability-linked syndicated revolving credit facility
Gunvor Singapore Pte. Ltd. (the “Borrower”), a wholly-owned subsidiary of Gunvor Group Ltd (“Gunvor” or the “Company”), has closed a US $1.035 billion sustainability-linked, syndicated revolving credit facility (the “Facility”) on 16 June 2023. The Facility, which was launched initially at US $550 million in April 2023, benefited from strong support from a total of […]