First of its kind LNG facility includes scope 1, 2, and 3 emissions measurement commitments
16 December 2021
Gunvor Group, the largest independent trader of liquefied natural gas (LNG) worldwide, has signed a new syndicated borrowing base facility (the “facility”) to support the working capital needs of the company’s growing LNG activities globally. The syndication launched at US $800 million and was oversubscribed following strong appetite from the market, predominantly in Asia, the Middle East and Europe, and closed at US $1.135 billion.
The facility, structured around global LNG trade flows including Gunvor’s shipping activities, will finance physical and derivative positions. As a part of the facility, Gunvor has committed to CO2 carbon emissions reporting to establish transparency for the carbon footprint of the company’s LNG value chain.
“The success of this new LNG borrowing base demonstrates a strong commitment from banks to support Gunvor’s growing LNG business through innovative structures,” said Tawfik Sadfi, head of structured trade finance at Gunvor Group. “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 said of the transaction: “The successful syndication of this facility, which is a first of its kind for LNG trading and 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.”
Gunvor has previously announced commitments in the areas of environment, social, and governance (ESG) targeting a 40% reduction in the company’s Scope 1 and 2 emissions by 2025. For existing and new trading, dedicated programs are being established to reduce emissions and environmental impact, while taking into account human rights considerations, in line with Gunvor’s commitment to the UNGPs on Business & Human Rights. Tracking and reporting of scope 1, 2, and 3 emissions related to the trading of LNG adds further to those commitments.
Societe Generale said: “We are proud to accompany Gunvor in this landmark transaction. This new LNG borrowing base embodies Gunvor’s long-term strategic move to support transitional commodities that enable the Energy Transition to a low carbon future.”
The Active Bookrunners, Rabobank and Societe Generale served, respectively, as Facility and Security Agent and Documentary Agent of the facility. They are joined by Natixis Singapore Branch as Mandated Lead Arranger.
Bookrunner and Mandated Lead Arranger
• Coöperatieve Rabobank U.A
• Natixis Singapore Branch
• Societe Generale
Mandated lead Arranger
• DBS Bank Ltd., London Branch
• Overseas-Chinese banking Corporation Limited
• Abu Dhabi Commercial Bank PJSC
• CA Indosuez (Switzerland) SA
• Industrial and Commercial Bank of China Limited, London Branch
• KFW IPEX – Bank Gmbh
• SMBC bank International plc
• Erste Group Bank AG
• First Abu Dhabi Bank PJSC
• ING Bank N.V, Amsterdam, Lancy / Geneva Branch
• Mashreqbank psc
• Raiffeisen Bank International AG
• Sumitomo Mitsui Trust Bank, Limited (London Branch)
Gunvor Group, press release