Trafigura Group Pte Ltd, one of the world’s leading independent commodity trading companies, has today announced the successful pricing of its inaugural US Dollar senior bond for USD400 million with a 5-year maturity.
The transaction was issued by Trafigura Funding S.A. under its European Medium Term Notes (EMTN) programme and is listed on the Irish Stock Exchange.
This new issuance was distributed globally with 44 per cent placed in Asia and 56 per cent in Europe.
Following a good reception of the transaction by investors, the pricing of the bond was moved from initial guidance of 5.375 per cent to the final price of 5.25 per cent.
This new senior instrument is the first US Dollar senior bond issued by Trafigura and confirms the company’s ready access to global capital markets.
It also marks a further diversification of the funding sources of the company.
The new senior instrument builds on Trafigura’s recent successful capital market offerings, including a USD600 million perpetual subordinated bond listed in Singapore in March 2017, which was followed by a USD200 million tap in November 2017.
The proceeds of the bond will be used for general corporate purposes and will notably serve to refinance part of the company’s EUR c. 607 million outstanding bond that will mature in November 2018.
Christophe Salmon, Chief Financial Officer for Trafigura, said: “We’re delighted to have successfully priced our inaugural US Dollar Senior Bond out of our well-established EMTN platform. This inaugural transaction allows us to further diversify our financing base and lengthen our debt maturity. We were pleased to see that our name is now well recognised with capital markets investors across Asia and Europe and across different segments.”
Joint book runners on the transaction were Bank of America Merrill Lynch (Documentation Agent), Citigroup, DBS Bank Ltd. and Standard Chartered Bank.