Gunvor Group has announced the successful signing and increase of its $872.5 million off balance sheet instrument (OBSI) facility.
After receiving a substantial over-subscription of 45%, and high levels of support from its existing banking partners, the facility was signed in favour of Gunvor’s wider network of subsidiaries in markets such as Germany, the Netherlands, and Singspore.
Initially launched at $600 million, the facility was supported by Gunvor banking partners such as ING.
ING acted as coordinator in the facility, active bookrunner, and documentation agent, while and Société Générale (SocGen) acted as the facility agent.
Together with Rabobank, Natixis, and Raiffeisen Bank International, ING and SocGen will act as the issuing banks.
Muriel Schwab, chief financial officer of Gunvor Group, said: “Gunvor’s strategy and business model has proven to be very resilient in volatile market conditions.
“We appreciate our financing partners’ support and confidence in our business priorities as we embrace the energy transition, as well as Gunvor’s approach to corporate governance and risk management.”
The closing of the OBSI facility follows the announcement of Gunvor’s commitments environment, social, and governance (ESG) areas, which target a 40% reduction in the company’s Scope 1 and 2 emissions by 2025.
Gunvor also recently closed its Asian syndicated revolving credit facility, which was 85% oversubscribed at $830 million.
The facility, which is guaranteed by Gunvor, will be used for the general corporate and working capital purposes of borrowers via OBSIs issued in the form of standby letters of credits, bid bonds, performance bonds, and/or guarantees.
Gunvor said its latest OBSI facility demonstrates its successful strategy to grow and diversify its financing sources to support new investments and existing operations.