Giant trader and shipowner Trafigura has sealed a new $1bn financing deal with a group of banks to protect its receivables.
UK law firm Norton Rose Fulbright (NRF) said it had advised French lender Natixis on the credit insurance transaction.
This is Trafigura’s first such deal and was described as an uncommitted discounted facility of credit-insured receivables and prepayments.
Natixis arranged and coordinated the facility, which was oversubscribed and upsized from an initial launch amount of $800m.
The lender also served as the document, facility and security agent, as well as the bookrunner.
The other six financial institutions that participated were First Abu Dhabi Bank, Mizuho Bank, MUFG, Abu Dhabi Commercial Bank, Nedbank and ABC International Bank.
The facility was structured to enhance the accounting treatment of insured receivables and prepayments, the law firm explained.
This is in line with capital requirements regulations, which shift the credit risk from the end buyer or producer to the insurer, and allow banks to discount these receivables.
“Through the facility, Trafigura Group companies will be able to discount on a limited recourse basis, with the credit risk fully supported by insurers approved by the participating bank syndicate,” NRF added.
The NRF team advising on the deal was led by partners Davide Barzilai and Tudor Plapcianu, and associate Natalie Lake.
Barzilai described the financing as “innovative and highly complex”.
“The success of this deal is a testament to the strong, ongoing collaboration between all parties involved,” he added.
Last week, Trafigura topped up its finances with a return to the Chinese bond market.
The Swiss commodities giant said it had sold a CNY 1.5bn ($205m) tranche of so-called “panda” debt maturing over three years.
“This marks the successful return to the panda bond market for Trafigura after a three-year period,” it added.
Trafigura said the “significant size” of the financing demonstrated a strong appetite from Chinese and international investors, including commercial banks, asset managers and securities firms.
