Trafigura Said to Seek Lower Interest Margins on $4 Billion Loan

Feb 04, 2014 10:04 am ET

Feb. 4 (Bloomberg) -- Trafigura Beheer BV wants to cut interest charges when the world’s third-largest independent oil trader refinances a $4 billion credit line, according to three people with knowledge of the transaction.

The company is offering a margin of 95 basis points more than benchmark rates on a 364-day facility, and a 120 basis point-margin for three years, said the people, who asked not to be identified because the terms are private. Amsterdam-based Trafigura paid 130 basis points and 190 basis points on $4.3 billion of similar revolving credit facilities last year, according to data compiled by Bloomberg.

Commodities traders including Glencore Xstrata Plc and Vitol SA use credit lines for day-to-day trading, regularly drawing and repaying the loans over short periods to finance the purchase and delivery of assets. European companies refinanced more than 143 billion euros ($193 billion) of credit facilities last year paying an average interest margin of 0.59 percentage point, the lowest since 2007, according to data compiled by Bloomberg.

A spokeswoman for Trafigura in Geneva, who asked not to be named citing company policy, declined to comment on the financing.

The loan is being arranged by Bank of China Ltd., BNP Paribas SA, ING Groep NV, Lloyds Banking Group Plc, Rabobank International, Royal Bank of Scotland Group Plc, Societe Generale SA, Standard Chartered Plc and UniCredit SpA, Bloomberg data show.

--Editors: Michael Shanahan, Shelley Smith