Norton Rose Fulbright advises Natixis on USD1 billion Trafigura financing facility

Norton Rose Fulbright has advised Natixis CIB (Natixis) on Trafigura Group’s (Trafigura) inaugural USD1 billion uncommitted discounted facility of credit-insured receivables and prepayments.

Natixis arranged and coordinated the facility, which was oversubscribed and upsized from an initial launch amount of US$800 million. It served as the document, facility and security agent, as well as Active Bookrunner and Mandated Lead Arranger.

The other six financial institutions that participated were First Abu Dhabi Bank PJSC, Mizuho Bank, Ltd. and MUFG, which also acted as Mandated Lead Arrangers; Abu Dhabi Commercial Bank PJSC and Nedbank Ltd, London Branch, which acted as Lead Arrangers; and ABC International Bank Plc, which acted as Arranger.

The facility was structured to enhance the accounting treatment of insured receivables and prepayments, in line with the Capital Requirements Regulation, which shifts the credit risk from the end buyer or producer to the insurer and allows banks to discount these receivables. Through the facility, Trafigura Group companies will be able to discount on a limited recourse basis, with the credit risk fully supported by insurers approved by the participating bank syndicate.

The Norton Rose Fulbright team advising on the deal was led by partners Davide Barzilai and Tudor Plapcianu, and associate Natalie Lake.

Barzilai said, “We were pleased to be able support our longstanding client Natixis and the other financial institutions on this innovative and highly complex transaction. The success of this deal is a testament to the strong, ongoing collaboration between all parties involved.”