Agricultural Bank of China contributes to a $1.125 billion USD sustainability-linked syndicated revolving credit facility to Gunvor Singapore Pte., Ltd. for debt refinancing, general corporate, and working capital purposes

Project narrative

On June 16, 2023, a syndicate of 26 banks — including China CITIC Bank International and the Singapore Branch of the Agricultural Bank of China (ABC) — entered into a $1.025 billion USD sustainability-linked syndicated revolving credit facility (RCF) agreement with Gunvor Singapore Pte. Ltd. — a Singapore-incorporated wholly-owned subsidiary of Gunvor Group Limited, a Cyprus-incorporated, Switzerland-headquartered energy trading and commodities firm — for refinancing and general corporate purposes and working capital requirements. The RCF carried a maturity period of 364 days, with a two extension options of up to 12 months. As a sustainability-linked facility, it included Key Performance Indicators (KPIs) covering climate change and human rights relating to the reduction of scope 1 and 2 greenhouse gas (GHG) emissions, the reduction of Scope 3 GHG emissions associated with the improvement of energy efficiency of the shipping fleet, the investment in non-fossil fuel projects, and the assessment of the impact of Gunvor's assets, joint ventures, and suppliers on Human Rights. The RCF included accordion option for banks that wished to join after close, which was exercised, bringing two lenders and $90 million USD of commitments, increasing the facility to $1.125 billion USD as of July 14, 2023. Gunvor Group issued a guarantee for the RCF. The proceeds were to be used by the borrower to refinance its existing indebtedness (the 2022 $912 million USD RCF, which China CITIC Bank International contributed to, as captured by Record ID#97529 and ABC contributed to, as captured by Record ID#97530) and for general corporate and working capital requirements. Record ID#101894 captures China CITIC Bank International's contribution. Record ID#101895 captures ABC's contribution. A total of 28 lenders joined the syndicate, including Abu Dhabi Commercial Bank, DBS Bank, MUFG Bank, Natixis, OCBC as active bookrunning mandated lead arrangers. Arab Petroleum Investments Corporation (APICORP), Emirates NBD Bank, First Abu Dhabi Bank, and State Bank of India joined as bookrunning mandated lead arrangers. Rabobank, Credit Agricole-CIB, and ING Bank joined as senior mandated lead arrangers. Indian Bank, Credit Suisse, Societe Generale, Mizuho Bank, and UBS AG served as mandated lead arrangers. Habib Bank, Krung Thai Bank, and SMBC joined as lead arrangers. Sumitomo Mitsui Trust Bank, Banque Internationale de Commerce - BRED (Suisse), Commerzbank, National Bank of Fujairah, UOB, and BCP Bank (Mauritius) joined as arrangers. On June 14, 2024, a syndicate of 31 lenders — including China CITIC Bank International Limited, the Shanghai Branch of China CITIC Bank International, the Singapore Branch of ABC, the Singapore Branch of the Bank of China (BOC), and the Singapore Branch of China Construction Bank Corporation (CCB) — entered into a $1.2 billion USD syndicated sustainability-linked RCF with Gunvor Singapore Pte. Ltd. for refinancing and general corporate purposes and working capital requirements. The RCF carried a maturity period of 364 days with two 12-month extension options. As a sustainability-linked facility, it included four sustainability Key Performance Indicators (KPIs) to be tested annually supporting Gunvor's strong commitment to improve the environmental impact of its trading operations and to invest in sustainable commodities and businesses relating to the reduction of scope 1 and 2 greenhouse gas (GHG) emissions, the reduction of Scope 3 GHG emissions associated with the improvement of energy efficiency of the shipping fleet, the investment in non-fossil fuel projects, and the assessment of the impact of Gunvor's assets, joint ventures, and suppliers on Human Rights. The RCF included accordion option for banks that wished to join after close, which was exercised, bringing two lenders and $120 million USD of commitments, increasing the facility to $1.32 billion USD as of July 12, 2024. Gunvor Group issued a guarantee for the RCF. The proceeds were to be used by the borrower to refinance its existing indebtedness (the 2023 $1.035 million USD RCF, which China CITIC Bank International and ABC contributed to) and for general corporate and working capital requirements.