China CITIC Bank International contributes to $912 million USD sustainability-linked syndicated revolving credit facility to Gunvor Singapore for refinancing and general corporate purposes and working capital requirements

Project narrative

On June 27, 2022, a syndicate of 23 banks — including the Singapore Branch of China CITIC Bank International and the Singapore Branch of the Agricultural Bank of China (ABC) — entered into a $912 million USD sustainability-linked syndicated RCF 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 an extension option of up to 12 months and a variable interest rate. As a sustainability-linked facility, it included environmental, social, and governance (ESG)-related Key Performance Indicators (KPIs) covering climate, energy transition and human rights to be tested annually, relating to the reduction of scope 1 and 2 emissions, the improvement of energy efficiency of the shipping fleet and reduction of scope 3 emissions; and the assessment of Gunvor's assets and joint ventures against Human Right principles. The RCF included a $200 million USD accordion option for banks that wished to join after close. Gunvor Group issued a guarantee for the RCF. The proceeds were to be used by the borrower to refinance its existing indebtedness (the 2021 $830 million USD RCF, which China CITIC Bank International contributed to, as captured by Record ID#97522) and for general corporate and working capital requirements. Record ID#97529 captures China CITIC Bank International. Record ID#97530 captures ABC’s contribution. China CITIC Bank International Limited, DBS Bank Ltd., and Natixis, Singapore Branch served as the active bookrunning mandated lead arrangers for the Facility, with Abu Dhabi Commercial Bank PJSC, Agricultural Bank of China Limited, Singapore Branch, Emirates NBD Bank (P.J.S.C), Singapore Branch and MUFG Bank, Ltd., Singapore Branch served as the bookrunning mandated lead arrangers. Coöperatieve Rabobank U.A., Singapore Branch, First Abu Dhabi Bank P.J.S.C., Singapore Branch, Crédit Agricole Corporate and Investment Bank, Singapore Branch, ING Bank N.V., Singapore Branch served as senior mandated lead arrangers, while Oversea-Chinese Banking Corporation Limited, Credit Suisse (Switzerland) Ltd., UBS AG, Singapore Branch, Mizuho Bank, Ltd., SOCIÉTÉ GÉNÉRALE, a public limited company incorporated in France, acting through its Hong Kong branch served mandated lead arrangers. Krung Thai Bank Public Company Limited, Singapore Branch, Sumitomo Mitsui Banking Corporation Singapore Branch joined as lead arrangers, while Sumitomo Mitsui Trust Bank, Limited Singapore Branch, Banque Internationale de Commerce-BRED (Suisse) SA, National Bank of Fujairah PJSC, United Overseas Bank Limited and Commerzbank Aktiengesellschaft, Singapore Branch joined as arrangers. On June 16, 2023, a syndicate of 26 banks — including China CITIC Bank International and the Singapore Branch of ABC — entered into a $1.025 billion USD syndicated, sustainability-linked RCF agreement 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 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) 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.