Trafigura raises RMB 500m through an inaugural Panda Bond and becomes the first international commodity trading company to access the domestic renminbi-denominated bond market

Singapore, 30 April 2018

Trafigura Group Pte Ltd (“Trafigura”), one of the world’s leading independent commodity trading companies, has today announced the successful raising of a 500 million renminbi-denominated bond issued in China’s mainland debt market (“Panda Bond”).

This first tranche issuance is part of a RMB 2,350 million Panda Bond programme for which Trafigura recently obtained National Association of Financial Market Institutional Investors’ (“NAFMII”) registration approval. The first tranche of the Panda Bond was placed in the Interbank Market under a Private Placement format for a 3-year maturity.

Trafigura becomes the first international commodity trading house and one of the first non-Chinese corporates to successfully tap this nascent capital market which has recently been opened to foreign issuers as part of the Chinese authorities’ willingness to promote its internationalisation.

This pioneering transaction is a milestone for Trafigura as it enables the Group to access a deep and diversified pool of Chinese investors comprised of commercial banks, asset managers, insurance companies and securities firms. It also marks a further step in Trafigura’s funding diversification strategy and allows the company to lengthen its debt maturity.

Christophe Salmon, Chief Financial Officer for Trafigura, said: “We’re delighted to have successfully started our Panda Bond programme. We have planted the Trafigura flag in a fast growing debt market and intend to become a recurring issuer. With the internationalisation of the Renminbi the domestic Chinese bond market is expected in time to become one of the largest bond markets in the world. This promising market will offer Trafigura an additional source of liquidity on an ongoing basis, supporting the growth of our trading business and investments.”

Claire Chen, Chief Financial Officer for Trafigura in China added: “We’re very pleased to see the fulfilment of this project which has been made possible thanks to the strong cooperation with the bookrunners as well as the People’s Bank of China (“PBoC”) and NAFMII’s support during the process.”

Bank of China acted as Lead Bookrunner on this transaction, ICBC as Joint Lead Bookrunner and Standard Chartered Bank as Bookrunner.

Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world. The trading business is supported by industrial and financial assets, including 49.6 percent owned global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management. The Company is owned by around 600 of its 3,935 employees who work in 62 offices in 35 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD136.4 billion in 2017. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. Visit: www.trafigura.com

Trafigura Beheer B.V. press release