Norton Rose Fulbright advises Natixis on US$1 billion Trafigura financing facility

Global law firm Norton Rose Fulbright has advised Natixis CIB (Natixis) on Trafigura Group's (Trafigura) inaugural US$1 billion uncommitted discounted facility of credit-insured receivables and prepayments.

Natixis arranged and coordinated the facility, which was oversubscribed and upsized from an initial launch amount of US$800 million. It served as the document, facility and security agent, as well as Active Bookrunner and Mandated Lead Arranger.

The other six financial institutions that participated were First Abu Dhabi Bank PJSC, Mizuho Bank, Ltd. and MUFG, which also acted as Mandated Lead Arrangers; Abu Dhabi Commercial Bank PJSC and Nedbank Ltd, London Branch, which acted as Lead Arrangers; and ABC International Bank Plc, which acted as Arranger.

The facility was structured to enhance the accounting treatment of insured receivables and prepayments, in line with the Capital Requirements Regulation, which shifts the credit risk from the end buyer or producer to the insurer and allows banks to discount these receivables. Through the facility, Trafigura Group companies will be able to discount on a limited recourse basis, with the credit risk fully supported by insurers approved by the participating bank syndicate.

The Norton Rose Fulbright team advising on the deal was led by partners Davide Barzilai, Tudor Plapcianu and associate Natalie Lake.

Davide said:

"We were pleased to be able support our longstanding client, Natixis and the other financial institutions on this innovative and highly complex transaction. The success of this deal is a testament to the strong, ongoing collaboration between all parties involved."

With more than 800 lawyers situated in the world's financial centres, Norton Rose Fulbright's global banking and finance team has one of the longest histories of any law firm in the field, advising major banks, finance providers, export credit agencies, corporate and sovereign entities and other participants in the global banking and finance arena.