Image credit: Bunker Holding A/S

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Bunker Holding A/S reports that it has entered into a $1bn unsecured revolving credit facility with a syndicate of 12 banks in one of the bunker industry's largest ever corporate credit arrangements.

The three-year credit facility refinances and increases Bunker Holding's existing $650m revolving credit facility, includes a funding capacity framework of up to $2.5bn - which is an increase of more than $1bn compared to the current setup - and an option to extend for up to five years.

Bunker Holding said its syndicate of global and regional banks is a mix of both new and existing bank partners. Deutsche Bank AG and Nordea Danmark acted as coordinators, bookrunners and mandated lead arrangers during the process.

Commenting on the news, Bunker Holding said the credit arrangement would provide support for the group's planned growth and further financial flexibility in the light of the upcoming global cap on sulphur content in January 2020, which is set to see a jump in the average stem value as bunker buyers switch to higher-priced low-sulphur fuels.

Christian Mens, Group Treasury Director at Bunker Holding and the driving force behind the new credit facility, remarked: "The new international credit facility agreement is a milestone event for Bunker Holding and underscores lenders' confidence in our business and strategy. I am looking very much forward to the cooperation with our new bank partners."

Michael Krabbe, CFO at Bunker Holding, said: "2020 heralds a paradigm shift to our industry in many ways and bunker companies need to be more financially robust, with a stronger credit-worthiness than ever before. With this credit facility, we are very well prepared and positioned for the future - and I am very pleased with the agreement and the great results achieved by Christian Mens and his team."