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Trafigura successfully returns to the international debt capital markets with the issuance of a USD400 million senior bond

Trafigura, one of the world’s leading independent commodity trading companies, has successful issued a USD400 million senior RegS bond with 5-year maturity. The bond priced at 5.875 percent, 50 basis points tighter than the Initial Price Talk (“IPT”) thanks to very strong support from institutional investors and private banks.

The quality of the order book was reflected by the range and geographical diversity of investors participating in the transaction, with approximately 100 investors distributed across Asia and Europe. The significant oversubscription of more than two times enabled the company to upsize the transaction to USD400 million whilst significantly tightening pricing.

Proceeds will be used for general corporate purposes. The long term duration of the USD senior bond will allow the company to further strengthen its balance sheet.

Christophe Salmon, Chief Financial Officer of the Trafigura Group, said: “We’re delighted to have successfully returned to the international debt capital markets with this tightly priced transaction. We were fortunate enough to be able to take advantage of a near perfect time window to raise the new bond. Being an unrated issuer, we particularly appreciate the effort that our investors deploy to understand the intricacies of our industry, business model and financial policy. Moreover, we’re very pleased that our investor base continues to expand amidst sustained interest for the commodities trading sector. We’ve continued to demonstrate the resilience of our business model during these unprecedented times.”

Joint bookrunners on the transaction were Citi, Credit Suisse, ING and Standard Chartered Bank who acted as the global coordinator.

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