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Gunvor Group Ltd has signed a $1.645 billion sustainability-linked, multi-currency revolving credit facility (RCF) in favour of Gunvor International B.V. and Gunvor SA.
The RCF received strong support from both existing and new banking partners, increasing the total amount of the facility from the previous year.
The RCF will be used for general corporate purposes, including the refinancing of the existing $1.175 billion 364-day tranche of the 2021 European Revolving Credit Facilities Agreement, dated 10 November 2021, and the $220 million 3-year tranche of the 2020 European Revolving Credit Facilities Agreement dated 10 November 2020.
The Facility consists of two tranches, available to Gunvor International B.V. and Gunvor SA:
- Tranche A: $1.375 billion 364-day RCF with three 364-day extension options
- Tranche B: %270 million 3-year RCF with one 364-day extension option
The Group, which has a $400 million Accordion Option, complements the existing $290 million 3-year tranche of the 2021 European Revolving Credit Facilities Agreement.
After the introduction of environment, social, and governance (ESG) key performance indicators (KPIs) in the Group’s European flagship corporate facility in 2021, the Group adopted sustainability KPIs in its Asian RCF facility earlier this year.
Gunvor has a strong commitment to improving the environmental impact of its trading operations and to investing in sustainable commodities and businesses.
The structure is composed of four KPIs relating 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 Group’s assets, and suppliers against human rights principles.
The KPIs have been readopted and extended in this year’s European Revolving Credit Facilities Agreement. Each KPI is annually tested and externally verified.
Jeff Webster, CFO of Gunvor Group, said, “Given the context of the considerable market and geopolitical turbulence of the year, the extension and increase of the facility demonstrates the clear strength and resilience of the relationship the company has with its banking partners.”
Coöperatieve Rabobank U.A., Credit Agricole Corporate and Investment Bank, Credit Suisse Ltd., ING Bank N.V., Natixis, SMBC Bank International Plc, Société Générale, UBS Switzerland AG and UniCredit Bank AG were mandated to arrange the facility.
Coöperatieve Rabobank U.A., Credit Agricole Corporate & Investment Bank, ING Bank N.V., Natixis, SMBC Bank International Plc, Société Générale and UniCredit Bank AG acted as active bookrunners while Credit Suisse Ltd. is facility and swingline agent.
Natixis and Société Générale acted as joint sustainability coordinators of the facility.
Arab Petroleum Investments Corporation (Apicorp) remained the book-running mandated lead arranger.
Emirates NBD PJSC, Citibank N.A., Jersey Branch, Industrial and Commercial Bank of China Limited, London Branch and Mizuho Bank are senior mandated lead arrangers.
China Construction Bank Corporation, Beijing, Swiss Branch Zurich and DZ Bank AG remain/areas mandated lead arrangers. Erste Group Bank AG and Sumitomo Mitsui Trust Bank, Limited (London Branch) are lead arrangers.
Arab Banking Corporation SA, Arab Bank Ltd., Banque de Commerce et de Placements, Commerzbank Aktiengesellschaft, London Branch, Europe Arab Bank, Habib Bank AG, KfW Ipex-Bank Limited, Mashreqbank, Raiffeisen Bank International AG are arrangers. Bank of China Ltd, London Branch joined as a new arranger.
Afrasia Bank Limited, GarantiBank International N.V. and Union de Banques Arabes et Françaises remain as participants.