Bunker Holding Group secures record-breaking credit facility
Bunker Holding Group, the world’s leading maritime service provider, enters new bank credit facilities of USD 1.11bn and increases its funding framework by 33 percent from USD 2.4bn to USD 3.2bn. The new bank syndicate reflects Bunker Holding Group’s global reach with the addition of large international banks.
Bunker Holding Group, the world’s largest bunkering company, lands an unsecured committed bank credit facility of USD 1.11bn based on an international bank syndicate. In addition, the Group’s overall funding framework has been raised to USD 3.2bn, an increase by 33 percent compared to the previous framework. The higher credit facility allows for Bunker Holding Group to extend clients’ much needed credit lines as liquidity in bunkering is pivotal, especially as the transition to alternative fuels continue to drive up prices.
This new credit facility is backed by 15 banks from Europe, Middle East, and Asia, adding an increased global aspect to the banking partners that comprise the Bunker Holding Group’s new credit syndicate. This underlines the trust shown in Bunker Holding Group across international markets.
“Bunker Holding Group has for the past more than 40 years shown strong positive financial results, and we are honoured by the support and trust that our 15 banking partners worldwide have shown us. This has resulted in a record-setting credit facility and shows a strong commitment towards our strategy for our future growth,” says Keld R. Demant, CEO of Bunker Holding Group.
Leading up to IMO2020, Bunker Holding Group was able to secure its largest credit facility in 2019, backed by 12 banks. Building on the previous bank syndicate, strategic banks from both Asia and Middle East have now joined, enabling local banking business to be conducted where the trading takes place.
“Having now entered into agreements with new banks in our busiest regions is a major step forward, as it allows us to stay even closer to where our clients operate. Adding banks and raising our credit capacity sends a strong signal, and I look forward to working with both previous and new partners,” says Christian Mens, Group Treasury Director at Bunker Holding Group.
First ESG-linked credit facility deal
While securing Bunker Holding Group’s largest credit facility yet for the next five-years, linking it to sustainability has been another milestone event. As Bunker Holding Group has been focusing on the sustainability agenda, publishing its first ever ESG-report in 2022, by adding KPIs towards environment, social, and governance in the credit facility is a testament to the joint commitment of moving the needle on these important issues.
“We received very positive feedback from banking partners after publishing our first ever ESG-report in 2022. It’s evident that this agenda is very important and that it will continue to be so in the future, and at Bunker Holding Group, we are leaning heavily into this. Staying ahead of the curve in this matter is not just good business, it is also vital to our future as an industry,” says Michael Krabbe, Chief Financial Officer at Bunker Holding Group.
The bank syndicate had closing on the new running five-year facility as of April 2023.
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