Oil trading at Trafigura office.(Picture supplied by Trafigura Beheer BV)
Trafigura wins $400m ME loan
Dubai, September 12, 2012
Commodities trader Trafigura has taken a $400 million loan from a group of Middle Eastern banks, as the group looks to diversify its lending pool at a time of stress in traditional banking spheres, banking sources said.
The one-year revolving credit facility was arranged by BNP Paribas and involved 11 GCC banks joining the deal, which was signed at the end of August, said the sources.
The loan was part of a strategy by Trafigura, which says it is the world's third-biggest trader of raw materials, to develop pools of lenders in different parts of the world to help diversify its funding sources, a banker with knowledge of the deal said.
"Before, the pricing they could get from international relationship banks meant they didn't have to expand too far from them, but now they are looking at other sources," said a second source, whose bank joined the transaction.
"The facility will finance our local inventories and shows our continued commitment to the region," said Christophe Salmon, CFO EMEA, Trafigura Beheer BV, confirming the deal.
The push into new banking markets by international companies reflects both the stressed funding conditions for Western banks, which has restricted their lending operations, but also the growth of emerging market lenders in areas like the Middle East into global brands.
The banks which joined the facility were: Arab Petroleum Investments Corp, Arab Bank, Abu Dhabi Commercial Bank , Ahli United Bank, Commercial Bank of Qatar , Doha Bank, First Gulf Bank, Gulf International Bank, Mashreq and Union National Bank , the first source said.-Reuters
More Finance & Capital Market Stories
- More support for Islamic banking urged
- Bahrain to set new takaful rules by year-end
- Oman fiscal surplus widens to $1.4bn
- Al khaliji opens new branch in Doha
- Bayzat launches online DBR calculator
- Dubai bourse tops 3,000 for first time in 5 years
- Bahrain mulls solvency rules for Takaful industry
- LuLu Exchange opens 3rd branch in Bahrain
- Saudi economic growth picks up in Q3
- GIH picks ex-Barclays banker as investment head