Narrative
Full Description
Project narrative
On October 23, 2023, a syndicate of 30 banks -- including Agricultural Bank of China, Bank of Communications, China Construction Bank, ICBC, and China Eximbank -- reached financial close on a USD 2.7 billion-equivalent multi-tranche syndicated lending facility to Trafigura Group Pte., Ltd., a Singapore-based commodities trader. The facility served as Trafigura's Asian financing facility ("Asian RCF"). Proceeds from the facility will be used to refinance existing facilities from 2020 and 2022, alongside general corporate purposes. The facility consists of three tranches: A 365-day, USD 620 million revolving credit facility. This tranche refinances a similar tranche from Trafigura's 2022 syndicated lending facility. A 3-year, USD 930 million term loan facility. This tranche refinances a similar tranche from Trafigura's 2020 syndicated lending facility. A 1-year RMB-denominated, USD 1.177 billion-equivalent term loan facility. This tranche refinances a similar tranche from Trafigura's 2022 syndicated lending facility. All three tranches were structured as sustainability-linked loans, which include five key performance indicators that will result in penalties or discounts on the facility's margin, depending on performance. A total of 22 banks contributed to the two USD-denominated tranches. Abu Dhabi Commercial Bank, Agricultural Bank of China - Shanghai Huangpu Branch, Bank of Communications Shanghai Putuo Sub-branch, Bank of Communications, Singapore branch, China Construction Bank, DBS Bank, Ltd., Development Bank of Japan, First Abu Dhabi Bank, ICBC, OCBC, and Standard Chartered Bank served as mandated lead arrangers and bookrunners for the USD tranches. The other participants in the USD-denominated tranches are unknown. A total of 14 banks contributed to the RMB-denominated tranche. China Eximbank served as the sole mandated lead arranger and bookrunner for the RMB-denominated tranche. The other participants in the RMB-denominated tranche are unknown.
Staff comments
1. In the absence of a detailed, tranche-by-tranche breakdown, AidData has assumed that Agricultural Bank of China, Bank of Communications, China Construction Bank, and ICBC only contributed to the two USD-denominated tranches. Similarly, AidData is unable to ascertain whether each bank contributed to both tranches, therefore equal contributions from each of the 22 lenders has been assumed ($70,454,545.5). A single project record has been created using the average maturity of the two tranches. 2. Similarly, absent additional information, AidData has assumed that China Eximbank only contributed to the RMB-denominated tranche. Equal contributions from each of the 14 lenders to that tranche have been assumed. 3. Trafigura has only provided the value of the RMB-denominated tranche in the USD-equivalent value (USD 1.177 billion). In the absence of the value of the facility in RMB and based on the reliance on Trafigura's official number, China Eximbank's project record has been created using USD to record the transaction amount.