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Trafigura, a market player in the global commodities industry, has entered into a $3 billion four-year loan jointly arranged and underwritten by Deutsche Bank and another international bank and syndicated to a number of participating banks.
Over 25 banks participated in the successful syndication, which was 1.6 times oversubscribed.
The loan is secured, in part, by a guarantee under the Untied Financial Loan program (UFK) of the government of the Federal Republic of Germany acting through the German Export Credit Agency (ECA) Euler Hermes Aktiengesellschaft.
The program is a tool to secure the long-term delivery of strategic commodities to Germany.
The loan will support a new commitment by Trafigura to deliver substantial volumes of gas into the European gas grid, and ultimately into Germany, over the next four years.
Trafigura will supply the gas to Securing Energy for Europe (SEFE), which was recently recapitalised by the German government.
The first gas delivery took place on 1 November 2022, and Trafigura will primarily use existing quantities from its global gas and liquified natural gas (LNG) portfolio to help secure gas supplies to SEFE.
The agreement included a review of Trafigura’s environmental, social and governance (ESG) policies and performance.
Richard Holtum, head of gas and power trading for Trafigura, said, “We are proud to be contributing to Europe’s energy security by supplying this significant volume of gas to Germany backed by our extensive portfolio and long-term US LNG contracts.”