Geneva-based commodity trading giant Gunvor Group Ltd. has successfully closed a US$2.4 billion sustainability-linked, multi-currency revolving credit facility (RCF), marking a significant expansion from last year’s US$2.27 billion facility. The transaction underscores the company’s strong banking relationships and continued progress in aligning its financing activities with environmental, social, and governance (ESG) principles.
Facility Overview
The RCF, which is divided into two tranches, will be available to both Gunvor SA (Switzerland) and Gunvor International B.V. (Netherlands). The structure provides the group with enhanced liquidity and flexibility for global trading operations.
| Tranche | Amount (US$) | Tenor | Extension Options | Purpose |
|---|---|---|---|---|
| A | 1.89 billion | 364 days | Three extensions of 364 days each | Short-term liquidity and trade finance |
| B | 510 million | 3 years | One 364-day extension | Medium-term corporate funding |
The facility also includes a US$400 million accordion option, allowing Gunvor to increase borrowing if needed. Proceeds will be used for general corporate purposes, including the refinancing of a US$1.78 billion 2024 tranche and a US$350 million 2023 tranche of its previous European RCF.
Sustainability and ESG Commitments
This credit facility continues Gunvor’s strategic focus on sustainability-linked financing, linking loan pricing to progress against specific ESG targets. The company’s commitments under the new arrangement include:
- Reducing Scope 1 and 2 greenhouse gas emissions across operations.
- Minimising Scope 3 emissions through improved energy efficiency in its global shipping fleet.
- Investing in renewable energy and carbon reduction projects.
- Ensuring human rights compliance across assets, suppliers, and joint ventures.
Gunvor’s performance against these targets will directly influence the financial terms of the facility, reinforcing accountability to its sustainability roadmap.
Banking Consortium and Leadership Roles
The transaction attracted robust support from international lenders, signalling confidence in Gunvor’s credit strength and ESG strategy.
Key institutions involved include:
| Role | Participating Banks |
|---|---|
| Bookrunning Mandated Lead Arrangers (MLAs) | Abu Dhabi Commercial Bank, Rabobank, Crédit Agricole CIB, Emirates NBD, ING, Natixis, Qatar National Bank, SMBC, Société Générale, UBS Switzerland, UniCredit |
| Active Bookrunners | Crédit Agricole CIB, ING, Natixis, SMBC, Société Générale |
| Facility & Swingline Agent | UBS Switzerland |
| Sustainability Coordinator | Natixis |
| Senior MLAs | BBVA, DBS Bank, First Abu Dhabi Bank |
| Additional MLAs | Citi, KfW Ipex-Bank, Mizuho Bank |
| Lead Arrangers | Bank of China, China Construction Bank, Commerzbank, DZ Bank, Erste Group Bank, ICBC, Lloyds Bank, OTP Bank, Sumitomo Mitsui Trust Bank, Standard Bank |
| Arrangers | ABC International Bank, Arab Bank, Banco BPM, Banque de Commerce et de Placements, CaixaBank, China Citic Bank Corporation, Deutsche Bank, Europe Arab Bank, GarantiBank International, Habib Bank, Mashreqbank, Nedbank, Raiffeisen Bank International, Union de Banques Arabes et Françaises |
Strategic Context
The deal follows a turbulent period for Gunvor, which was recently forced to abandon its planned acquisition of Lukoil’s international assets after being wrongly labelled “the Kremlin’s puppet” by a US Treasury tweet—a claim the company has categorically denied as “misinformed and false.”
Despite the controversy, Gunvor’s ability to secure a larger, oversubscribed facility highlights the resilience of its business model and continued trust from the global banking community.
Management Remarks
Jeff Webster, Chief Financial Officer (CFO) of Gunvor, commented:
“We are very pleased with the outcome of this refinancing, which not only increases the facility amount—particularly in the longer tenor—but also brings new banking partners into our global financing network. This reflects confidence in our strategy and our sustainability-linked approach to growth.”
Outlook
The new RCF strengthens Gunvor’s balance sheet and positions the firm for continued investment in low-carbon trading solutions and green energy infrastructure. Analysts note that the company’s sustained access to sustainability-linked financing places it among the industry leaders in responsible commodity trading—a sector under increasing scrutiny for its carbon footprint.
With growing pressure from regulators and investors alike, Gunvor’s enhanced facility represents both a financial and ethical milestone, setting a precedent for the future of sustainable trade finance in the commodities sector.