BB Energy Group Holding, a globally integrated commodities group, signed a one-year, $350 million revolving credit facility. The 365-day revolving credit facility will be used to refinance the company’s maturing facility, which was signed in 2021 and extended in 2022, as well as for general corporate purposes.
The facility was launched in primary syndication at $200 million on May 17, 2023 and was oversubscribed by 100%, enabling an increase in size to $350 million through scaling back lenders’ original commitments. Seven new banks joined the revolving credit facility this year, bringing the bank pool to 27 lenders. The facility also includes an accordion feature to increase the facility amount up to $400 million.
“We are delighted with the result of this year’s revolving credit facility which has been significantly oversubscribed and closed at $350 million,” Jacques Erni, CFO at BB Energy, said. “This well-established and continuing recognition of our structured platform is a reflection of the strong endorsement from our banking partners, and this allows us to access a pipeline of sustainable and committed sources of funding across global markets. Such a vigorous commitment from our banks is a testament of their enduring trust in BB Energy. It also showcases their confidence in our enhanced corporate governance structures and control processes which have been critical to our incisive growth and profitability.
“We are grateful and deeply appreciate the long-standing support of our core banking group and are pleased to welcome seven new banks to the facility. This strongly demonstrates the strength of BB Energy’s development trajectory over the last few years.”
“Heartfelt congratulations to BB Energy team for the successful refinancing outcome and landmark transaction; notably in terms of total commitments – largely oversubscribed – and new banks coming on board,” Gregory Lambillon, managing director, head of trade and commodity finance Switzerland, ING Bank, said. “A well-thought syndication strategy across different regions, in line with the Group’s global footprints.
“ING Sector & Syndications teams are proud to have played a leading role in this process. I see it as a testimony of BB Energy’s enhanced governance, resilience to market cycle, positive set of financial results, and balanced risk management framework. Looking forward to continuing our long-term partnership with the company in its different markets.”
ING Bank, Mashreqbank, Natixis, Société Générale and UBS Switzerland AG acted as bookrunners and mandated lead arrangers, with Abu Dhabi Commercial Bank, Banca UBAE, Bank ABC, Citibank, CA Indosuez, Garanti Bank and HSBC also joining the new facility as early birds prior to the launch of the syndication. Société Générale also acted as syndication coordinator, with ING Bank as documentation agent and facility agent of this new transaction.