Moving Energy
Forward
Moving Energy
Forward
Managing risk and liquidityLiquidity refers to the ease with which an asset or security can be bought or sold in the market without affecting its price. In the context of energy commodities trading,... 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 are a key aspect of financial analysis and risk management in the energy commodities trading sector. In this context, borrowing bases refer to the calculation and determination of... 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 crisis**Global Financial Crisis** The Global Financial Crisis, often abbreviated as the GFC and also known as the financial crisis of 2007-2008, was a severe worldwide economic meltdown that is considered... 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 calls**Margin Calls** In the arena of energy commodities trading, margin calls are demands for additional capital or securities made by a brokerage firm to an investor when the assets in... Read more related to the Group’s paper positions**Paper Positions** In the world of energy commodities trading, "paper positions" refer to trades that deal with contracts rather than the physical delivery of the actual commodity. These contracts, which... Read more (hedging**Hedging** In the context of energy commodities trading, hedging is a risk management strategy used to offset potential losses from price fluctuations in the market. It is akin to taking... 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 are arrangements where a group of financial institutions jointly provide financing for trade transactions. These syndications are typically organized by one or more banks, known as... 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 is a term used in finance to describe a process where an asset or financial instrument is converted into cash over time, typically to repay a debt or fund... 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: