Trafigura Group, one of the world’s leading independent commodity trading companies, announced the closing of a new US Private Placement transaction, raising USD203.5 million of financing across 5, 7 and 10 year tenors.
The transaction was Trafigura’s sixth in this market, and was timed to refinance a USD98 million US Private Placement maturity and also raised over USD100 million of additional liquidity for the company. The transaction was upsized from an initial USD100 million following strong investor demand, with over half of the total amount raised in the 10 year tranche.
The transaction was the largest sustainability-linked financing on record in the US Private Placement market to date and incorporated KPIs designed to incentivise the Company to meet ambitious targets related to the reduction of greenhouse gas emissions, the further alignment of Trafigura’s responsible sourcing programme with international standards for sustainable procurement, and the development of a renewable power portfolio.
Christophe Salmon, Group Chief Financial Officer for Trafigura, said: “The US Private Placement market is an important part of Trafigura’s financing strategy, offering stable access to long-term liquidity. We were pleased to incorporate the sustainability-linked mechanism into the transaction this year, taking another opportunity to demonstrate leadership in this field, whilst our investors participate in this journey alongside us.”
MUFG (MUFG Securities Americas Inc.) and Société Générale (SG Americas Securities, LLC) acted as Agents on the transaction.
