BB Energy Group Holding Ltd. successfully closes its new syndicated 1 Year Revolving Credit Facility at USD 400 million

The 1 year RCF will be used to refinance the maturing facility signed in July 2023, as well as for general corporate purposes. The RCF includes a 1 year extension option, exercisable at BB Energy’s request (at the discretion of each lender).

BB Energy is among the world’s leading independent energy trading companies, with key offices in London, Singapore, Dubai, Houston, and Athens.

The new facility was launched in primary syndication at USD 300 million on 15 May 2024 and following successful syndication and strong global demand from a range of international banks across continents, the facility was oversubscribed by 66%. This enabled an increase in size of the facility to USD 400 million with the Group choosing to scale back lenders’ original commitments. This year, seven new banks have joined the RCF, increasing the bank pool to a record 31 lenders. The facility also includes an accordion feature to increase the facility amount up to USD 450 million.

Jacques Erni, BB Energy’s Chief Financial Officer, said:

“We are delighted by the successful completion of our 2024 Revolving Credit Facility, which has been significantly oversubscribed and closed at USD 400 million. It is a reflection of our financial strength and growth prospects. The incremental borrowing capacity and flexibility enhances our competence to pursue strategic growth initiatives as we focus on delivering long-term shareholder returns.

“This positive outcome was made possible through the support of 31 lenders, including a larger Bookrunner and Mandated Lead Arranger (BMLA) group and seven new banks which have now been added to our growing list of banks. We are grateful for the long-standing commitment of our core banking group and to the banks that have joined the facility for the first time. The increased geographic diversification of our banking base and unswerving support of our core banks underscores their confidence in BB Energy’s sound financial discipline and the enhanced corporate governance structures, which have been critical to our growth.

“We look forward to maximizing the value of our diverse asset base while maintaining a focus on transparency, accountability, operational excellence, and value creation.”

Guillaume Van Gemert, Head of Energy Commodities at Crédit Agricole Corporate and Investment Bank  remarked:

“Once again, the continuing efforts of BB Energy to enhance and upgrade its commodity trading platform have paid off, enabling the Company to raise significant new commitments from additional lenders, including in non-western jurisdictions. We wish to warmly congratulate the BB Energy teams who have been highly committed in providing transparency and open discussions with its banking pool.

“Meanwhile, we are proud that Credit Agricole CIB Loan & Syndication team could eventually join the club of Active BMLAs, and therefore play an instrumental role in the success of this RCF syndication. We are grateful to BB Energy for giving us this opportunity, a genuine testimony of their trust and also of Credit Agricole CIB’s brand name importance in the commodity sector.”

Abu Dhabi Commercial Bank PJSC, Crédit Agricole Corporate and Investment Bank, First Abu Dhabi Bank PJSC, ING Bank N.V., Mashreqbank, Natixis Corporate & Investment Banking, Société Générale and UBS Switzerland AG acted as BMLAs with Banca UBAE, Citibank, Garanti Bank and HSBC also joining the new facility as Early Birds prior to the launch of the syndication.

Société Générale also acted as Syndication Coordinator, with ING Bank N.V. as Documentation Agent and Facility Agent, Abu Dhabi Commercial Bank PJSC, Crédit Agricole Corporate and Investment Bank and Natixis Corporate & Investment Banking being also Active Bookrunners of this new transaction.

The following banks joined the 8 BMLAs in the facility:

Mandated Lead Arrangers: 5

• ABSA Group Limited
• Arab Petroleum Investment Corporation (APICORP)
• Banque MISR, Dubai Branch
• Nedbank Limited, London Branch
• The National Bank of Ras Al-Khaimah P.S.C.

Lead Arrangers: 6

• Afrasia Bank Limited
• Banca UBAE S.p.A.
• Citibank N.A., London Branch
• Erste Group Bank AG
• HSBC UK Bank Plc
• SBM (Mauritius) Ltd

Arrangers: 1

• ABC International Bank plc

Co-Arrangers: 9

• AKA Ausfuhrkredit-Gesellschaft mbH
• Al Ahli Bank of Kuwait
• Bank of China, London Branch
• British Arab Commercial Bank plc
• BCP Bank (Mauritius)
• DenizBank AG
• National Bank of Fujairah PSJC
• Raiffeisen Bank International AG
• State Bank of India, DIFC Branch

Participants: 2

• GarantiBank International N.V.
• Habib Bank Limited, Singapore Branch

Overview of BB Energy Group Holding Ltd

BB Energy was founded by the Bassatne Family in the 1960s; with an operational history of more than 50 years.  Over the last decade, the Group has expanded its trading operations from the Mediterranean and is now considered one of the leading independently owned energy trading companies, globally. The Group is primarily engaged in trading Crude, refined oil products, LNG, LPG and is further diversifying into the Renewable space through the BB Energy Renewable Division and Solar Century Africa. While BB Energy remains a physical trader, it has invested in midstream and downstream assets to create a platform for further international expansion.

Today, BB Energy is a dynamic independent energy trading company with key trading hubs in London, Dubai, Houston, and Singapore, and has approx. 340 professionals in more than 10 offices worldwide and over 500 employees including the downstream businesses.

During 2023, BB Energy achieved traded volumes of c.25 million tons of crude and petroleum products and gas which resulted in a turnover of approx. USD 18.5 billion.