TXF Global 2022: Export, Agency & Project Finance
We’re taking the global export roadshow to Lisbon! Join us on the 7th & 8th June 2022 for another unmissable hybrid event. Deal makers from across the globe are attending in force. Don't miss out...
In September 2016, despite a BB- rating Russo-Swiss agrochemical producer EuroChem closed a tightly priced $800 million pre-export finance (PXF) facility, slicing 50bp off its cost of PXF debt and setting a new benchmark for similarly rated Russian borrowers in the same sector.
With the imminent closing of a spate of refinancings, negotiations over pricing and terms on major deals in Russia’s PXF pipeline for H1 2017 appear to be reaching a conclusion. Indications are that pricing benchmarks have fallen and covenants loosened – a debt market backdrop that could yet improve further for borrowers in H2 2017.
The largest structured commodity trade finance syndication done by a chinese copper producer to date, Dongying Fangyuan made clever use of China’s SAFE rules to go offshore for cheaper debt.
Commodity trader Gunvor’s first foray into the US trading market - Gunvor USA raised a $500 million borrowing base loan without any parental guarantees.
Despite junk status at group level, Noble Americas tapped the structured debt market for a $2 billion borrowing base facility in May 2016 – the first large-scale syndicated secured credit facility by Noble group worldwide.
Metalloinvest’s pricing push has seen it emerge with a big decrease on the cost of its pre-export debt for 2017. Details will be confirmed at signing – expected this week – but improved macro conditions and ample bank liquidity look set to ensure the borrower gets a good deal.
The race to close the first international syndicated structured loan into Chinese downstream oil and gas ended last year when Shandong Qingyuan debuted with a prepayment facility.
In a rare soft commodity pre-export financing, Rabobank and Zanaco structured a deal to extend the reach of the supply chain and meet the working capital needs of Zambian agribusiness NWK Agri-Services.
The $3 billion Tengizchevroil pre-export revolver is ultimately a liquidity facility designed to enable optimum timing and pricing for future TCO bond issues. But the deal was a success in its own right, and is likely to have been tightly priced given the additional bond business it appears to be generating for the banks involved.
A downturn in global commodity markets and a rise in regulatory pressure has led to greater de-risking by structured trade finance banks. This funding gap is being increasingly filled by large commodity traders, giving them even greater market clout and a lending margin to add to trading profits.