GENEVA, December 21, 2020 / PRNewswire / – Gunvor Group (“Gunvor” or “the Company”) has successfully completed a new 300 million euros financing (the “Facility”), which is a syndicated pan-European natural gas repurchase facility spanning multiple jurisdictions Europe with a shared security package. It will be used to support Gunvor’s growing business in the natural gas sector Europe, where the company is already one of the largest physical natural gas traders.
The innovative financing allows Gunvor’s banking partners to participate in a natural gas financing structure with access to a robust security package based on a true sales transaction through a security trust and a separate account to collect the sales proceeds. This uniquely structured trade finance solution gives Gunvor the ability to secure, expand and diversify access to competitive finance.
“Financing the European natural gas trade is a challenge for trading companies, given the inherently complex nature of its logistics, which includes pipeline and storage capacities, as well as the regulatory environment, which operates in multiple jurisdictions. . There is no common framework to fight property rights or fungible product promises. By working with our banking partners, we overcame these challenges to set up an innovative financing structure with competitive prices, ”said Tawfik Sadfi, Head of Origination and Structured Trade Finance at Gunvor.
The facility was structured by Coöperatieve Rabobank UA (Rabobank) with its commodity trading subsidiary Brightfield Trading BV acting as “grantor” and Gunvor acting as “creator”. Rabobank will act as coordinating agent and facility administrator, and Gunvor will act as logistics agent. Rabobank also served as bookrunner and mandated lead arranger, as well as coordinator and security officer. Mandated Lead Arrangers include CA Indosuez (Swiss) SA, ING Bank NV Amsterdam, Geneva branch and UBS Switzerland AG.
“Rabobank is delighted to have an excellent partnership with Gunvor which has resulted in an innovative working capital financing solution for its European gas activities that is flexible, scalable and cost competitive.” Rabobank is committed to supporting its clients in the energy transition and has therefore developed solid expertise in the financing of natural gas pensions. In a challenging banking environment in 2020, the implementation of this very first syndicated commodity repo structure – a legal novelty supported by our senior advisor Norton Rose Fulbright LLP – is an exceptional achievement and something to be very proud of all of us. parties that have contributed to this success, “said Peter Zonneveld, Global Head of Structured Inventory Products at Rabobank.
Gunvor is a leading player in the European and US physical natural gas markets, performing wholesale operations with utilities and industrial customers. To support its activities, Gunvor maintains a portfolio of investments – as well as medium and long-term contracts and partnerships – in strategic assets, notably in transport, pipelines, storage and regasification. Gunvor’s global reach and advanced analytics enable the company to develop specialized transactions for its clients, supported by leading risk management and trade finance services. The Gunvor team also draws on the expertise of the company’s liquefied natural gas (LNG) team, the world’s largest independent LNG trader, and is currently developing electricity trading to complement its operations. .
About the Gunvor Group
Gunvor Group is one of the world’s largest independent commodity trading companies by revenue, creating logistics solutions that safely and efficiently deliver physical energy from where it originates to and stored where it is the most requested. Through strategic investments in industrial infrastructure (refineries, pipelines, storage and terminals), Gunvor generates more sustainable value across the global supply chain for its customers. In 2019, the Gunvor group generated $ 75 billion turnover on 198 million tonnes of volumes. The Group’s main sales offices are Geneva, Singapore, Houston, and London, with a network of more than 20 representative offices and other commercial offices around the world.
More information can be found at GunvorGroup.com.
Sir. Seth Thomas Pietras
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SOURCE Gunvor Group