TXF Americas 2020
The fun in the sun returns! Bringing all key players together for two days of networking, we explore case studies of the latest deals and examine the next hot opportunities across the region.
A funding crisis is developing in the commodities market as producers and traders, particularly of the small and mid-sized variety, struggle to access the type and volume of finance they were able to ten years ago, according to a new trade-finance report from international law firm Clyde & Co.
The Swiss-headquartered Russian agrichemical EuroChem Group AG has signed a $750 million pre-export finance facility with a club of leading international banks. The funds will be used to refinance part of its debt as well as for capital expenditure and other general corporate purposes.
Banco Latinoamericano de Comercio Exterior (Bladex) has arranged and closed a $102 million, syndicated loan in favour of companies belonging to the Favorita Group; a leading Ecuadorian agribusiness conglomerate with diversified business activities including bananas, dairy, and fertilisers. The transaction marks the largest syndicated loan for Favorita and successfully broadens the company´s pool of bank relationships.
The International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank (IsDB) group, has signed a $3 billion umbrella financing framework agreement with the government of Jordan. The funds will be used to finance the import of strategic commodities – such as energy products and foodstuffs - into Jordan.
Swiss-headquartered commodity trader ECOM Agroindustrial Corporation (ECOM) has mandated banks to act as arrangers and bookrunners for the launch of its $450 million syndicated revolving credit facility (RCF).
The European Bank for Reconstruction and Development (EBRD) is arranging a $130 million syndicated loan facility in support of Ukraine’s leading grain and oilseeds trader and producer Nibulon. The bulk of the financing is coming from the commercial bank sector.
Deutsche Bank has closed a €300 million ($334 million) borrowing base facility for the German metal production company VDM Metals Group (VDM). Acting as the coordinating bank, Deutsche has arranged the syndicated facility to enable VDM to secure working capital following the sale of the group from ThyssenKrupp to private equity firm Lindsay Goldberg.
Kazakhstan-focused copper production company KAZ Minerals has signed a new $50 million revolving credit facility (RCF) with Caterpillar Financial Services (UK) (Cat Financial), a subsidiary of Caterpillar Incorporated.
Export finance volumes in the first half of 2015 have tumbled by 28% year-on-year, and by 35% compared to the second half of last year, TXF’s H1 Export Finance Report revealed this week. The reduction in large project and aviation finance deals has been cited as a key reason for the market drop-off.
PGNiG Upstream International (PUI), a subsidiary of Polish oil and gas group PGNiG, has signed a $400 million credit facility agreement with eight international banks. The main use of proceeds from the facility will be the early repayment of some of PUI’s outstanding debt, including the entire debt contracted to finance the acquisition of assets from Total E&P Norge in 2014.
Gazprom’s UK-based subsidiary, Gazprom Marketing & Trading (GM&T) has signed a 364-day $500 million syndicated revolving credit facility (RCF).
Hong Kong-headquartered, commodity trading house Noble Group has today made public the conclusions and results of the PricewaterhouseCoopers (PwC) review of Noble's mark-to-market (MTM)* models, valuations and governance framework.
Development financing institutions (DFIs) and a syndicate of commercial banks have arranged financing of $1 billion to fund the development of an Azerbaijan offshore gas field feeding the Southern Gas Corridor from the Caspian to Europe.
ABN AMRO is continuing to strengthen its energy, commodities & transportation (ECT) division with two senior appointments. The bank has promoted Friso Koopmans as global head of energy commodities clients and appointed Rui Florencio as global head of metals commodities clients.
If prizes were being dished out for corporate success since the turn of the millennium, the big commodity trading houses would be right up there at the front of the queue. In the last five years alone, the sector’s biggest players – Glencore, Vitol, Trafigura and Cargill – have doubled their combined annual revenues, which now stand on the verge of $1 trillion.
Jonathan Bell reviews this year’s Ghana Cocobod financing, analyses the record of pricing, and looks at the prospect of further value-added for African soft commodities.
TXF held its Africa afternoon conference last week with more than 80 guests joining to discuss CAPEX, ECA and Project Finance in Africa. We approached the topics from a slightly different angle: whether ECA finance was fit for purpose and how project finance could be made to work better in the region – rather than looking purely at shortcomings in the continent.
Gunvor Singapore, the wholly-owned subsidiary of the international commodity trading company, Gunvor Group, has increased its $911.7 million syndicated revolving credit facility (RCF) to $1.0627 billion by bringing in new banks under the RCF’s accordion structure.
International commodity trading company Gunvor Group has signed a $525 million secured uncommitted borrowing base facility for its operations in the Middle East. The facility was well supported in the market, with an increase of $105 million over the previous year’s facility.
Asian American Gas Holdings (AAG Energy) a leading and independent coalbed methane (CBM) producer in China, has secured a $250 million reserve-based lending (RBL) facility. The loan will be utilised by its wholly-owned subsidiary Sino-American Energy Incorporated (SAEI), acting as borrower.
A consortium of local, regional and international banks has arranged a $350 million loan facility for Kenya Pipeline Company (KPC) for a new fuel products pipeline to run between Mombasa and Nairobi.
Ukraine’s major Ukrainian sunflower oil producer and exporter Industrial Group ViOil (ViOil) has secured a $40 million pre-financing through Dutch bank ING and the European Bank for Reconstruction and Development (EBRD).
Belgian-headquartered mining and metals company Nyrstar has successfully closed the refinancing of its structured commodity trade finance facility at €400 million ($442.7 million), in a transaction led by Deutsche Bank. There is scope under an accordion feature within the deal to considerably increase the borrowing.
While much of the global economic focus of late seems to be on Greece and its potential exit from the eurozone – Grexit, or probably more apt Acropolis Now – quite a lot of important fabric building is and has been happening in our wonderful world of trade and project finance. The loan with ENOC comes at a time when the company looks set to acquire the Turkmenistan-focused Dragon Oil for an estimated $5.8 billion for the remaining 46% of Dragon.
Italian export credit agency, SACE, has signed a cooperation agreement with the Angolan Ministry of Finance. The agency has also finalised a €200 million ($220 million) credit line in favour of the Angolan public oil & gas company Sonangol, aimed at supporting export and investments of Italian companies in the African country.
Natural rubber supply chain manager Halcyon Agri Corporation has successfully completed a refinancing of up to $413 million, replacing existing debts with a mix of term loan and working capital facilities.
US-headquartered, Castleton Commodities International (CCI) has closed two committed credit facilities totalling $3.75 billion. The funds will be used for general corporate purposes, but also largely to finance the company's acquisition of Morgan Stanley's Global Oil Merchanting business.
Detour Gold Corporation has amended its C$135 million ($106 million) senior secured credit facility following negotiations with its bank lending group.
Oil producer Statoil ASA has successfully signed a $5 billion multicurrency revolving credit facility, guaranteed by Statoil Petroleum AS. The syndication saw a healthy oversubscription with Statoil electing to increase the initial launch figure.