Trafigura Group, one of the world’s leading independent commodity trading companies, has successfully issued a EUR400 million senior RegS bond with a five year maturity. Following a broad engagement by Trafigura’s management team with investors during the virtual roadshow, the bond priced at 3.875 percent, a tightening of 37.5 basis points from the Initial Price Talk, 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 the 120 investors who participated in the transaction. The oversubscription by circa two times after the price was revised, enabled the Group to increase the size of the transaction to EUR400 million.
Proceeds will be used for general corporate purposes. The long duration of the Euro senior bond will allow the Group to further strengthen its balance sheet.
Christophe Salmon, Chief Financial Officer of the Trafigura Group, said: “This transaction marks the return of Trafigura to the Euro bond primary market after a hiatus of six years since our last Euro denominated issuance in 2015. The success of our USD RegS transaction in September 2020 clearly showed the company’s standing with international investors.
“One of our objectives for this transaction was to develop our access to the Euro-focused investor base. We’re delighted to see the book diversification and the continued development of our investor base, which demonstrates the growing interest for the commodities trading sector among sophisticated fixed income investors. It also reflects the Group’s ability to access different parts of the global capital markets at regular intervals and to achieve competitive spreads, after the recent USD400 million bond issued in September and a USD100 million tap in December last year,” concluded Christophe.
Joint bookrunners for the transaction were Credit Suisse who acted as Global Coordinator, ING, Société Générale and Unicredit.
