Trafigura, a market leader in the global commodities industry, announces the closing of its inaugural uncommitted discounted facility of credit-insured receivables and prepayments (the “Facility”) totalling USD1 billion. The Facility was substantially oversubscribed and upsized from its initial launch amount of USD800 million, with seven financial insitutions participating in the transaction.
Stephan Jansma, Group Chief Financial Officer, Trafigura said: “This is the first time a commodity trading company has successfully aligned the interests of financial institutions and insurers around a syndicated facility of this nature, allowing off-balance sheet treatment of receivables and prepayments. We’re grateful for the strong collaboration with our financial institutions, insurance and legal counterparties to successfully conclude this new facility.”
The Facility has been strategically structured to optimise the accounting treatment of insured receivables and prepayments in accordance with the Capital Requirements Regulation. This innovative approach transfers the credit risk from the end buyer or producer to the insurer, enabling banks to discount these receivables. Under this Facility, Trafigura Group companies will benefit from discounting on a limited recourse basis, with the credit risk fully backed by insurers approved by the participating bank syndicate.
Natixis CIB was mandated to arrange and coordinate the Facility, serving as the document, facility and security agent, as well as sole Active Bookrunner and Mandated Lead Arranger. First Abu Dhabi Bank PJSC, Mizuho Bank, Ltd. and MUFG, acted as Mandated Lead Arrangers; Abu Dhabi Commercial Bank PJSC, Nedbank Ltd, London Branch, acted as Lead Arrangers; and Bank ABC (ABC International Bank Plc) acted as Arranger. Brokers Lockton and Guy Carpenter supported the structuring of the Facility.
