Gunvor Singapore, a wholly-owned subsidiary of Gunvor Group, closed a $1.035 billion sustainability-linked, syndicated revolving credit facility. The borrower has further upsized the facility by $90 million via an accordion feature, bringing the total facility amount to $1.125 billion.
The facility, which was launched initially at $550 million in April 2023, benefited from strong support from a total of 26 existing and new banks and closed significantly oversubscribed by more than 88%, increasing the total facility amount from the previous year. The borrower has further upsized the facility by $90 million via an accordion feature, which was structured to accommodate two banks that joined the facility after June 2023, bringing the total facility amount to $1.125 billion.
The 364-day facility, which is guaranteed by the company and includes two 12-month extension options, is intended to refinance the borrower’s existing indebtedness, and for general corporate and working capital purposes.
This is the second time the borrower is using the sustainability-linked loan structure, which was first introduced in the company’s European flagship corporate facility in 2021 and adopted in the Asian RCF in 2022. It includes sustainability key performance indicators (KPIs) covering climate change and human rights, which will be tested annually and verified externally, to showcase Gunvor’s commitment to improve the environmental impact of its trading operations and to invest in sustainable commodities and businesses. The KPIs relate to the reduction of scope 1 and 2 greenhouse gas (GHG) emissions; reduction of scope 3 GHG emissions associated with the improvement of energy efficiency of the shipping fleet; the investment in non-fossil fuel projects; and the assessment of the impact of the group’s assets, JVs and suppliers on human rights.
“The successful renewal of our Asian RCF is the result of the deep collaboration between Gunvor and its banking partners, supported by our strong performance and positive outlook. We are also glad to welcome new lenders joining our anchor facility”, Jean Rohr, regional CFO for Asia-Pacific at Gunvor, said.
Abu Dhabi Commercial Bank, China CITIC Bank, DBS Bank, MUFG Bank, Natixis and Oversea-Chinese Banking Corporation were mandated to arrange the facility and acted as the active bookrunning mandated lead arrangers for the facility, with Agricultural Bank of China, Arab Petroleum Investments Corporation (APICORP), Emirates NBD Bank, First Abu Dhabi Bank and State Bank of India joined as the bookrunning mandated lead arrangers. Natixis also acted as facility agent and sustainability coordinator of the facility.
Coöperatieve Rabobank, Crédit Agricole Corporate and Investment Bank and ING Bank are senior mandated lead arrangers.
Indian Bank joined as a new mandated lead arranger, whereas Credit Suisse, Société Générale, Mizuho Bank and UBS remain as mandated lead arrangers.
Furthermore, Habib Bank joined as a new lead arranger, while Krung Thai Bank , Sumitomo Mitsui Banking Corporation remain as lead arrangers.
Sumitomo Mitsui Trust Bank, Banque Internationale de Commerce – BRED (Suisse), Commerzbank Aktiengesellschaft, National Bank of Fujairah and United Overseas Bank remain as arrangers, with BCP Bank joining as a new arranger.