Trafigura Secures $800 Million Loan from Germany for Strategic Metals

Singapore-based Trafigura, the world’s biggest private metals trading firm, announced on Friday it signed an $800 million five-year loan agreement guaranteed by the government of Germany. The company said the loan, being provided under Germany’s Untied Loan Programme, will support its commitment to deliver up to 500,000 tonnes of non-ferrous metals to Germany according to a five year supply agreement.

“In exchange for offering cover on the financing, Trafigura has committed to a new long term agreement to supply strategic commodities,” the company said.

“Trafigura has entered into a $800 million five-year loan underwritten and arranged by Societe Generale and syndicated to seven participating banks. The loan is guaranteed by the government of Germany acting through the German Export Credit Agency (ECA) Euler Hermes Aktiengesellschaft. The guarantee is provided under Germany’s Untied Loan program to support the commitment by Trafigura to deliver, under a five-year supply agreement, up to 500,000 tonnes of non-ferrous metals into Germany.” the company statement said.

The Untied Loan program is a tool to secure the long-term delivery of strategic commodities to Germany. In exchange for offering cover on the financing, Trafigura has committed to a new long term agreement to supply strategic commodities. The agreement also included a review of the company’s environmental, social and governance (ESG) policies and performance.

“The support of the Untied Loan program has enabled Trafigura to take on a long term commitment to supply strategic commodities to German industry,” said Trafigura’s Co-Head of Metals and Minerals Bintas said.

Non-ferrous metals are used by Europe’s renewable energy, electronics and chemical industries, as well as suppliers to the construction and car industries.

In addition to being one of the world’s biggest commodities traders, Trafigura also owns and operates a number of industrial assets including global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform.

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