Mon 5 Nov 2018, 16:22 GMT

Monjasa seals US financing deal with JP Morgan


Credit facility to be used to cover the firm's activities in the US following 62.5% growth in the Americas.


The 8,200-dwt African Sprinter operates off the coast of Namibia, and is one of around 10 vessels deployed by Monjasa in West Africa.
Image credit: Monjasa
Monjasa has announced that it has closed a new credit agreement with J.P. Morgan Chase in a deal that has been secured on the back of positive sales volume developments across the Americas.

The financing is to be used to cater for the firm's working capital requirements in relation to its growing activities in the US and "is in line with the Group's ambition to partner up with top tier trade finance banks," Monjasa said.

"We are very pleased to welcome a new partner in J.P. Morgan Chase Bank N.A. to the Group's banking pool. This new credit agreement caters for Monjasa's working capital needs in relation to our growing US business and is fully in line with the Group's ambition to partner up with top tier trade finance banks," remarked Rasmus Knudsen, Head of Treasury and Trade Finance.

The new credit agreement is already operational, Monjasa added.

Americas sales volume growth

In the space of 12 months, between 2016 and 2017, Monjasa notes that quantities sold in the Americas increased by 250,000 tonnes, or 62.5 percent, to 650,000 tonnes.

The company launched its first trading office in Stamford, Connecticut, back in 2011, and in 2015 established a physical presence for supply operations and bunker trading in Panama City.

"By sourcing oil products exclusively from the largest commodity trading houses and introducing customers to an operating model backed by ISO standards, it has been possible to establish a prominent position as physical supplier in the Panama Canal," Monjasa explained.

Annual report

As previously reported, in Monjasa's annual report for 2017, the business swung into profit with a net income of $7m as revenue climbed $0.2bn, or 16.7 percent, to $1.4bn.

Consolidated group equity grew in 2017 by $10m, or 8.8 percent, to $124m, while the solvency ratio of 36.6 percent was a slight improvement on the prior-year's figure of 36.2 percent.


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