Energy trading conglomerate BB Energy has closed a US$375mn syndicated revolving credit facility (RCF) with a group of major banks, securing funding from 26 global and regional lenders.
The trader will use the proceeds to refinance a maturing facility signed in July 2024, as well as for general corporate purposes.
BB Energy opted to scale back the size of the deal after securing commitments of over US$400mn from the bank market, with the oversubscribed RCF having initially launched at US$300mn in May.
The facility has a one-year extension option and an accordion feature to increase the size to US$450mn.
The deal is smaller than last year’s RCF which closed at US$400mn and involved 31 banks, with BB Energy noting in a July 9 statement that this year’s amount was in line with the group’s “current liquidity needs”.
Abu Dhabi Commercial Bank, Crédit Agricole CIB, First Abu Dhabi Bank, ING Bank, Mashreq, Natixis CIB, Société Générale and UBS Switzerland all returned as bookrunning mandated lead arrangers (MLAs).
Société Générale also acted as syndication coordinator, while ING served as documentation and facility Agent, with Banca UBAE, Bic-BRED, Garanti Bank, HSBC, National Bank of Fujairah, Nedbank and Raiffeisen Bank joining the facility as early birds prior to the syndication.
MLAs on the facility include Absa, National Bank of Fujairah, Nedbank and the State Bank of Mauritius, with further support provided by four lead arrangers, two arrangers, seven co-arrangers and Habib Bank as a participant.
Guillaume Van Gemert, head of energy commodities at CA Indosuez Switzerland within the wider Crédit Agricole group, says there was “open dialogue” with lenders and an attractive pricing structure.
“In spite of a bearish market environment, characterised by an increase in geopolitical tensions and trade tariffs, BB Energy is managing to navigate these challenges and continues to keep the trust of the banking industry,” he adds.
