LONDON, Aug 5 (Reuters) - Gunvor Group has signed a $290 million, one-year revolving credit facility that will be used to support general corporate and working capital purposes through the issuance of off-balance sheet instruments, the commodity trading house said on Tuesday.
The uncommitted financing will be used to issue standby letter of credits, bid bonds and performance bonds or guarantees.
Borrowers under the facility, which is guaranteed by Gunvor Group, are Gunvor SA, Gunvor International BV, Gunvor Deutschland GmbH, Gunvor Raffinerie Inglostadt GmbH and Independent Belgium Refinery NV.
ABN AMRO Bank and ING Bank were joint coordinators on the facility, which closed significantly oversubscribed and was increased from a launch amount of $250 million.
ABN AMRO Bank, ING Bank, DZ bank and Eurler Hermes Europe were mandated lead arrangers and bookrunners on the financing. Natixis and Rabobank International were mandated lead arrangers, while Credit Suisse and Societe Generale were lead arrangers.
The new facility comes after Swiss-based Gunvor signed a $500 million borrowing base loan in July to refinance an existing loan from July 2013 and finance the group’s refining and marketing activity in greater Bavaria and surrounding countries.
Reporting by Alasdair Reilly, editing by Louise Heavens