Czarnikow (CZ) extends its committed, syndicated borrowing base facility

August 31, 2022

Adeoti Ogunsola

Czarnikow Group Limited (CZ) is proud to have extended its syndicated Borrowing Base Facility last month, following its original launch in July 2021. The facility has increased at its first extension from US$80 million to US$105 million, following additional funding provided by a new finance partner DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt Am Main and increased participations from CZ’s long-standing partner banks Coōperative Rabobank U.A, Société Générale, Paris, Zurich Branch and Natixis Corporate and Investment Banking. Rabobank acted as Coordinator, Documentation Agent and Mandated Lead Arranger, and Natixis CIB as Facility Agent, Security Agent and Mandated Lead Arranger. Participants in the facility also include ING Bank N.V, GarantiBank International NV and Banco Do Brasil S.A, London Branch.

CZ’s 160-year history in supply chain services informs its experience of managing global market volatility, economic cycles and multiple crises. Last year, CZ announced its ambitious, purpose-led growth plan, including further diversification of its product portfolio, geographical footprint and additional value-added services.

Julian Randles, CFO of CZ, says; “We are proud that our long-standing financial partners have once again gone beyond our previous relationships to commit to a syndicate facility. The facility has been structured to cover sugar, but CZ has evolved to also trade a range of food and beverage ingredients, packaging and energy products in recent years. We will be looking to engage with our finance partners to expand product and geographical coverage of this facility to better fit future growth of our business as well as to potentially welcome it to our longstanding continuous improvement sustainability programme, VIVE.”

Steven de Vries Reilingh, Rabobank Head Trade & Commodity Finance Agri EMEA: “At Rabobank we see CZ as a company with a great vision which it combines with a strong focus on innovation, digitalization and sustainability. With these competences the company has diversified itself from its competitors and created a unique proposition as trade flow solutions provider in many key origins and with a diversified product suite (anchored by its sugar business). We are for many years a partner of CZ and its Sustainability Programme VIVE. This successful renewal and increase of the facility was another success in our journey.”

Natacha Kovshova, Head of Commodity Trade Finance – Agri at Natixis CIB says “Over the past year, Czarnikow has proved once again its unique positioning as a leader in the supply chain industry despite worldwide challenges. In parallel to a long-term growth in origination markets, the Company keeps on providing new services and products to its customers thanks to innovative and flexible solutions. We are pleased to strengthen our partnership with Czarnikow over the years through the extended Borrowing Base Facility, the bilateral Transactional Facility, as well as our collaboration on sustainability and digital initiatives.”

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