Moving Energy
Forward
Moving Energy
Forward
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.
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
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.
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.
Project finance, acquisition loans and hybrid financing to meet specific long-term financing needs for fixed assets.
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: