Bloomberg News

Trafigura Said to Hire Seven Banks to Arrange $900 Million Loan

July 20, 2012

Trafigura Beheer BV hired seven banks to help arrange a $900 million loan, according to two people familiar with the matter.

The loan will be split into a one- and a three-year facility, with the amount in each tranche yet to be determined, the people said, asking not to be identified because the details are private. Meetings to market the loan will be held in Taipei on July 24 and Singapore on July 26 and lenders have until Aug. 31 to respond, the people said.

Victoria Dix, head of media relations at Trafigura, wasn’t immediately able to comment on the financing. Yu Poh Leng, the general manager of Ruder Finn Asia, Trafigura’s Singapore-based public relations firm, confirmed a loan is being marketed to banks, declining to give further details.

The lenders hired are Australia & New Zealand Banking Group Ltd., Industrial & Commercial Bank of China Ltd., National Australia Bank Ltd., Oversea-Chinese Banking Corp., Standard Chartered Plc, Sumitomo Mitsui Banking Corp., and Westpac Banking Corp., the two people said today.

Trafigura, which trades oil, minerals and metals, signed a yuan loan in May and boosted a 364-day revolving credit facility by 83 percent to $1.1 billion in March with lenders including Commonwealth Bank of Australia and DBS Group Holdings Ltd.

It also borrowed from banks in Asia in August and in October 2010, when it signed $1.075 billion of one and three- year term and revolving-credit facilities that have since been refinanced, according to data compiled by Bloomberg.

Commodities Trading

The company said in May it plans to relocate its Group Chief Financial Officer Pierre Lorinet to Singapore and make Trafigura Pte Ltd., its Singapore unit, the main booking entity for the group’s trading.

Other commodity traders are frequent seekers of Asian bank debt. Steel trader Stemcor Holdings Ltd., which increased a loan to $205 million with banks in the region in October, will come to market seeking to refinance funds in the next few weeks, as will oil trader Arcadia Petroleum Ltd., another person familiar with the matter said today.

Switzerland’s Duferco SA will also approach banks in Asia for a loan this quarter, that person said. Duferco has a $420 million loan signed in November 2011 that matures in May 2013, according to data compiled by Bloomberg.

Trafigura is offering to pay a so-called top level all-in rate of 190 basis points over the London interbank offered rate for the one-year loan and 250 basis points for the three-year facility to banks pledging $30 million or more to either tranche, the two people said.

To contact the reporter on this story: Katrina Nicholas in Singapore at knicholas2@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net


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