Trafigura secures $700 mln credit, support from Asia
SINGAPORE, Nov 2 (Reuters) - Trafigura has secured a $700 million credit facility, exceeding its $505 million request, showing that financing remained available for the commodities trading house for its activities in metal and energy markets.
Interest from banks and institutions in Asia led to the facility being oversubscribed, the European trader said in a statement on Monday.
The syndicated revolving credit facility serves as a refinancing of the existing one-year facility, which closed in November 2008 at $200 million, said Trafigura Beheer B.V., the world's second largest independent non-ferrous trading company and third largest independent oil trader.
The global credit market freezed up after the collapse of Lehman Brothers last September, but has since picked up in part due to massive stimulus packages from several developed nations and Chinese demand for commodities picking up.
The facility was arranged by banks including Australia and New Zealand Banking Group Ltd (ANZ.AX), DBS Bank (DBSM.SI), Industrial and Commercial Bank of China (0349.HK), and Standard Chartered Bank (STAN.L).
"The success of the facility demonstrates the strong relationship we enjoy with the banking community as well as the banks confidence in Trafigura's business model," chief financial officer Pierre Lorinet said.
The trader said earlier this year it will invest up to $400 million over the next two years to double storage capacity at its unit, as it boosts trading operations in emerging markets such as Africa and Central America. [ID:nSP417748]
In March, Trafigura secured a $520 million syndicated revolving credit facility with mainly European banks. [ID:nSP476813] (Reporting by James Topham; Editing by Ramthan Hussain)
