Gunvor closes US $1.565 billion LNG syndicated borrowing base facility
Gunvor Group, an independent trader of liquefied natural gas (LNG) worldwide, has renewed its syndicated borrowing base facility to support the working capital needs of the company’s growing LNG activities globally, according to the company's release. The syndication launched at US $1.2 billion and was oversubscribed, with strong appetite from new lenders, including more than 20 banks from Europe, the Middle East, Africa, and Asia. Six new banks joined. The facility has been correspondingly increased from US $1.135 billion to US $1.565 billion.
The facility, which was inaugurated last year, has been structured around Gunvor’s global LNG trade flows, including shipping activities, and will finance physical and derivative positions. As a part of the Facility, Gunvor has committed to CO2 carbon emissions reporting to establish transparency for the carbon footprint of the company’s LNG value chain.
Gunvor has previously announced commitments in the areas of environment, social, and governance (ESG) targeting a 40% reduction in the company’s Scope 1 and 2 emissions by 2025. For existing and new trading, dedicated programs are being established to manage emissions and environmental impact, while taking into account human rights considerations, in line with Gunvor’s commitment to the UNGPs on Business & Human Rights. Tracking and reporting of scope 1, 2, and 3 emissions related to the trading of LNG adds further to those commitments.
Cooperatieve Rabobank U.A acted as the Lead Coordinator, Facility and Security Agent and Société Générale as Documentary Agent of the facility.
