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Global Banking Consortium Closes $720MM in Credit Facilities with Mercuria Energy Group

November 25, 2020, 08:00 AM
Filed Under: Energy

Mercuria Energy Group Ltd., the global energy and commodities group, announced the successful signing of credit facilities in the amount of $720 million that was joined by a group of 22 banks.

The Facilities were arranged by Bank of China Limited, Singapore Branch, Coöperatieve Rabobank U.A. Singapore Branch, DBS Bank Ltd., Emirates NBD Capital Limited, Emirates NBD Bank (P.J.S.C), Singapore Branch, 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, Hong Kong Branch, and Sumitomo Mitsui Banking Corporation Singapore Branch, acting as Bookrunning Mandated Lead Arrangers ("BMLAs").

The Facilities, signed on 16 November 2020, are for a total of US$ 720 million and include a one-year facility (with an Offshore Chinese Renminbi option), and one-year swingline facility.  The Facilities are revolving in nature and were issued by Mercuria Energy Trading Pte. Ltd. and Mercuria Asia Group Holdings Pte. Ltd. acting as Borrowers.

Mercuria will use the Facilities to refinance the Group's maturing syndicated revolving credit facilities, as well as for general corporate and working capital purposes.

The new Facilities were launched on 17 September 2020 for general syndication. Following strong global demand from a range of international banks across continents, the new RCF was oversubscribed by about 40 percent above the initial launch amount, with Mercuria choosing to scale back on lender commitments. The Facilities complement the existing US$ 380 million 3-year tranche of the 2019 Agreement. The combined US$ 1.1 billion one-year and three-year ARCF facilities continue to be an important pillar of the Group financing strategy.

"Despite the unprecedented events seen in 2020, especially in the commodity markets, we are very pleased to announce the continued support from our twenty-two geographically diverse banking partners, including a large group of top-level BMLA banks. This support demonstrates their strong confidence in Mercuria and our business model, coupled with our solid risk management capabilities in such volatile times," said Bin Wang, Mercuria's Chief Financial Officer for Asia.

Guillaume Vermersch, Mercuria's Group Chief Financial Officer, added: "The lenders in our banking group recognize Mercuria's operating strategy. Our diversified business model has enabled us to take measured opportunities and provide further profitable growth with stringent risk management in place. We are committed to growth in Asia and look forward to working with our banking partners in a sustainable manner."

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