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Gunvor Group has successfully closed a €570 million working capital transaction, which consists of a syndicated, pan-European natural gas repo facility covering multiple jurisdictions in Europe with a shared security package.
Eight banks supported the Gunvor Group, including four new lenders, enabling the arrangement to expand to cover eight eligible natural gas storage locations, up from three.
Milos Spasic, Gunvor’s head of STF energy EMEA and Latam said, “Thanks to a doubling of support from our banking partners, the flexibility and scope of this Facility increases considerably.
We’re now able to cover an expanded number of European storage facilities at a critical time in the market.”
The renewal allows Gunvor’s banking partners to participate in a natural gas financing structure with access to a security package based on a true sale transaction.
This trade finance solution gives Gunvor the ability to secure, scale, and diversify access to competitive financing.
The facility was structured by Coöperatieve Rabobank U.A. with its commodity trading subsidiary Brightfield Trading B.V. acting as grantor and Gunvor acting as originator and logistic agent.
Rabobank acts as coordinating agent and trustee of the working capital facility as well as lead participant. Other participants include CA Indosuez (Switzerland) SA; ING Bank N.V Amsterdam, Geneva branch; UBS Switzerland AG; Raiffeisen Bank International AG; Erste Group Bank AG; Die Sparkasse Bremen AG; and Mizuho Bank, Ltd.
Robin de Milliano, senior product manager with Rabobank’s structured inventory products said, “Scaling up this first ever syndicated commodity repo structure during times of unprecedented market volatility is…[something] all parties involved can be proud of.”
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