Gunvor Group said that GE Capital has launched a US$299 million factoring program for Gunvor’s receivables portfolio to finance part of Gunvor’s German refining business. The deal is a part of Gunvor’s broader strategy to diversify its financing base while reducing liquidity risk throughout its businesses.
“By freeing up trade finance lines we are creating more liquidity and more opportunity. So instead of just getting a bigger gas tank, factoring makes our financing engine more efficient,” said Gunvor’s chief financial officer Jerome Schurink.
Gunvor said it is one of the first trading houses to establish a factoring program as a way to diversify how its supports its operations. This deal represents the largest single receivable finance program in Germany.
“Gunvor’s growth over the years has been driven by the innovative approaches its financing team has taken to support the company’s trading and logistics expertise,” said Jörg Diewald, chief commercial officer at GE Capital Germany. ”GE Capital looks forward to a successful cooperation with Gunvor which might even lead to other projects beyond financing—building on both companies’ footprint in the oil and gas industry.”
To read the full news release click here.