Trafigura Preps Launch of Asset-Based Loan

The Mexican subsidiary of global trader Trafigura could launch an up to $350m 1-year asset-based loan into general syndication as soon as this week after wrapping up roadshows among Latin American banks. Bookrunners are BNP Paribas, Bladex and Scotia bank, with Banco do Brasil also heard participating. The structure is unusual for LatAm investors, but Trafigura is heard looking to diversify its funding base beyond its relationship lenders. Size will be based on a percentage of the underlying worth of the collateral, which in this case will be metal inventories and receivables. The structure requires the borrower to consistently demonstrate it holds a sufficient amount of assets to support the loan. While rare in LatAm, the structure has been used in a similar manner in Colombia, where BNP Paribas also led a $180m reserve-base facility for Pacific Rubiales to finance oil and gas exploration. In that case, the value of the borrowing base was amended twice a year. Trafigura is one of the world’s largest independent traders in the oil and non-ferrous concentrates markets.