Gunvor Group has signed a $420 million secured uncommitted borrowing base facility, replacing a $400 million facility agreed in August last year, the company said in a statement.

The funding is used to finance working capital needs including the purchase of oil products, margin calls with hedge providers and receivables related to transactions in the Middle East.

The loan, which is for Gunvor SA, Gunvor Middle East DMCC and Gunvor Singapore, comprises a $105 million secured syndicated loan and $315 million of secured bilateral facilities.

The financing was arranged by ABN Amro Bank as bookrunner and mandated lead arranger. Apicorp, Gulf International Bank and Mashreqbank joined the financing as mandated lead arrangers, while Emirates NBD also joined on a top tier ticket through an accordion feature.

Arab Bank (Switzerland) and Nedbank joined as arrangers.

The loan closed oversubscribed and was increased from a launch amount of $300 million. - Reuters