Gunvor secures $1.14bn LNG borrowing facility

Commodities trader Gunvor has secured a $1.135bn syndicated borrowing base facility to expand its LNG operations globally, the company announced on December 16.

The syndication was launched at $800mn but was oversubscribed by investors mostly in Asia, the Middle East and Europe, and closed at $1.135bn. The  funds will be used to finance physical and derivative positions, Gunvor said.

The Swiss trader, which is targeting a 40% cut in its Scope 1 and 2 emissions by 2025, said the facility included a commitment on reducing both these emissions and Scope 3 ones.

“The success of this new LNG borrowing base demonstrates a strong commitment from banks to support Gunvor’s growing LNG business through innovative structures,” the company's head of structured trade finance, Tawfik Sadfi, said. “Gunvor’s clearly defined trading strategy and business model—which function hand-in-hand with our sustainability commitments—continue to attract the confidence of the market.”

Rabobank, one of the active bookrunners for the transaction, described it as the first of its kind in the industry, noting that it coincided with "unprecedented volatility in the market, reflects the strong interest of banks to support responsible participants in the growing global LNG market, one of the main enablers of the energy transition.”

The other active bookrunner was Societe Generale.  Natixis Singapore Branch served as mandated lead arranger.