Trafigura Beheer BV, the third-largest independent oil trader, increased loans to $4.3 billion from $3 billion after a group of 50 lenders offered more funds than first sought.
The financing replaces existing debt and comprises a one-year revolving credit of $1.4 billion and a $2.9 billion three-year credit line, Laurent Christophe, head of corporate finance and corporate funding for Trafigura Pte Ltd., said in an interview. The loans pay interest at 130 basis points and 190 basis points more than the London interbank offered rate respectively, he said.
“Since last year, we’ve seen an improvement of the banking landscape,” Christophe said by telephone from Geneva. “The top trade finance banks are back in the game after they went through a deleveraging process from mid-2011, when they were facing a liquidity crisis. Today they are refocusing on our sector and are redeploying capital, especially to the larger traders.”
BNP Paribas SA, ING Groep NV, Lloyds Banking Group Plc, Royal Bank of Scotland Group Plc, Societe Generale SA and Standard Chartered Plc arranged the deal as bookrunners, Christophe said. They increased the size of their commitments compared to previous loans and participated solely in the three-year portion, he said.
Of the other 44 banks in the deal, eight had not lent to the Amsterdam-based company before, he said. Under a revolving credit, money repaid can be borrowed again. A basis point is 0.01 percentage point.
The deal replaces the company’s $1.1 billion 364-day loan maturing Mar. 1 and a $2.6 billion loan from March 2011, according to a statement from the company.
Trafigura is the biggest oil trader after Glencore International Ltd. and Vitol SA, purchasing 111 million metric tons of crude and petroleum products in 2011, according to its website.