Mercuria Energy has announced the signing of US$1.2 billion worth of credit facilities that it will use to refinance the group’s maturing syndicated revolving credit facilities, as well as for general corporate and working capital purposes.
The credit arrangements, which were signed on 15 November, include a one-year facility with an Offshore Chinese Renminbi option), a one-year swingline facility, and a three-year facility, as well as an extension of the 2018 three-year facility by a further 12 months. All the facilities are revolving in nature and were issued by Mercuria Energy Trading Pte. Ltd. and Mercuria Asia Group Holdings Pte. Ltd.
The facilities were arranged by Australia and New Zealand Banking Group Limited, Bank of China, Singapore Branch, Coöperatieve Rabobank U.A. Singapore Branch, DBS Bank Ltd., Emirates NBD Capital Limited, Industrial and Commercial Bank of China Limited, London Branch, ING Bank N.V. Singapore Branch, Mizuho Bank, Ltd., MUFG Bank, Ltd., Oversea-Chinese Banking Corporation Limited, Société Générale, Singapore Branch, and Sumitomo Mitsui Banking Corporation Singapore Branch, acting as Bookrunning Mandated Lead Arrangers. CTBC Bank Co., Ltd joined the Facilities prior to launch of general syndication as the Taiwan Coordinator Mandated Lead Arranger.
The new Facilities were launched on 9 September 2019 with bank meetings held in Taipei, Middle East and Singapore.
Bin Wang, Mercuria’s Chief Financial Officer for Asia, commented: ‘This year’s refinancing demonstrates the continued strong support from both new and existing banking partners. Thirty-seven geographically diverse banks committed to these Facilities, including a large group of top-level BMLAs. We are pleased to announce that we have seven new banks participating in our Asian facilities.’
Guillaume Vermersch, Group Chief Financial Officer, added: ‘The lenders in our banking group recognise Mercuria’s operating strategy and are confident in our business model. As the Group has grown, it has strengthened its business model through geographic and sectorial diversification. Its growth has been both organic and through the acquisition and integration of global companies, including the most recent bunkering and shipping firm, Aegean Marine Petroleum. We have also invested and incorporated our blockchain and technology companies in Singapore. With our ever increasing footprint in Asia, we look forward to deepening the working relationship with these financing partners.’
As previously reported by Bunkerspot, many of the key players in the bunker industry – including Peninsula Petroleum. World Fuel Services and Bunker Holding – have been arranging enhanced credit facilities ahead of the IMO 2020 regulations, which will drive up shipping companies’ fuel bills and stretch credit lines.