Trafigura signs USD800 million loan agreement guaranteed by the Federal Republic of Germany
Trafigura has entered into a USD800 million five-year loan underwritten and arranged by Societe Generale and syndicated to seven participating banks, according to the company's release. The loan is guaranteed by the government of the Federal Republic of Germany acting through the German Export Credit Agency (ECA) Euler Hermes Aktiengesellschaft. The guarantee is provided under Germany’s Untied Loan program to support the commitment by Trafigura to deliver, under a five-year supply agreement, up to 500,000 tonnes of non-ferrous metals into Germany.
The Untied Loan program is a tool to secure the long-term delivery of strategic commodities to Germany. In exchange for offering cover on the financing, Trafigura has committed to a new long term agreement to supply strategic commodities. The agreement included a review of Trafigura’s environmental, social and governance (ESG) policies and performance.
Non-ferrous metals are used by Europe’s renewable energy, electronics and chemical industries, as well as suppliers to the construction and car industries.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura owns and operates a number of industrial assets including global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform. Trafigura is owned by its employees and employs over 13,000 people working in 48 countries.
