Vitol Said to Hire Banks to Arrange $4 Billion Credit Line in Refinancing

Vitol SA, the world’s largest independent oil trader, hired banks to arrange a $4 billion loan to refinance debt, two people familiar with the situation said.

The revolving credit will include one- and three-year lines that can be extended by another year, said the people, who declined to be identified because the information is private. BNP Paribas SA, Credit Agricole CIB, ING Groep NV, Royal Bank of Scotland Group Plc, Societe Generale SA and Mizuho Financial Group Inc. are among the arrangers.

Commodity and energy companies have raised $292.3 billion from syndicated loans this year, almost double than during the corresponding period in 2009, according to Bloomberg data. Glencore International AG, the world’s largest commodities trader, in May raised $10.2 billion in its largest borrowing.

Elizabeth Adams, a London-based spokeswoman for Vitol, declined to comment.

Vitol signed a $3.9 billion forward-start loan last year paying interest at 225 basis points more than Libor in the first year, according to data compiled by Bloomberg. A basis point is 0.01 percentage point. The three-month London interbank offered rate, an average of rates set daily by banks and used as a borrowing benchmark, is 0.2919 percent.

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

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