Trafigura raises RMB 540m through Panda Bond programme

(Image Courtesy: gCaptain)

Trafigura Group Pte Ltd (“Trafigura”), one of the world’s leading independent commodity trading companies, has successfully issued a 540 million renminbi-denominated bond in China’s mainland debt market (“Panda Bond”). As with the previous three tranches issued from Trafigura’s Panda Bond programme, this new tranche was also placed in the Interbank Market under a Private Placement format for a 3-year maturity.

Following a targeted marketing effort, this fourth issuance was significantly oversubscribed. It drew a more diverse investor base than for the previous tranches, which demonstrates the considerable interest for Trafigura’s credit shown by the domestic Chinese investment community that includes commercial banks, asset managers, insurance companies, trust companies and securities firms. The final coupon has significantly tightened since the first tranche issued in April 2018, confirming the strong appetite of the Chinese market for Trafigura’s long-term debt. The total amount raised under the company’s Panda Bond programme is circa USD337 million.

“Trafigura credit is now well anchored and sought after in China’s domestic capital market,” said Christophe Salmon, Trafigura’s Group Chief Financial Officer. “We were the first commodity trader to plant our flag in this very large debt market and we appreciate the significant effort investors have made to understand our business.”

“The unqualified support received from The People’s Bank of China and the National Association of Financial Market Institutional Investors was key for the success of Trafigura’s first Panda Bond programme,” added Claire Chen, Trafigura China’s Chief Financial Officer.

Bank of China acted as Lead Bookrunner on this transaction, and ICBC as Joint Lead Bookrunner.

Sea News, May 22