Gunvor Says LNG Borrowing Base Increase a Sign Commodity Now ‘Mainstream’

Gunvor Group Ltd. has renewed its syndicated borrowing base that was launched last year to support its LNG trading activities, attracting new interest and additional commitments from lenders across the world. 

The trading house said it launched the syndication at $1.2 billion. It was oversubscribed with more than 20 banks from Africa, Asia, Europe and the Middle East in a sign that “LNG has secured a place as a strategic commodity for both the energy transition and energy security,” said Gunvor’s head of structured trade finance Tawfik Sadfi. 

Ultimately, six new banks joined the borrowing base, which was increased to nearly $1.57 billion.

“The successful refinancing and increase of this facility underscores the extent to which a growing number of banks recognize LNG...