Czarnikow Group Limited (CZ) announces its first syndicated Borrowing Base Facility to start this month which launched at US$50 million and closed oversubscribed at US$80 million. This facility was arranged by CZ’s long-standing partner banks Coöperatieve Rabobank U.A as Coordinator, Documentation Agent and Mandated Lead Arranger, and Natixis as Facility Agent, Security Agent and Mandated Lead Arranger. Participants in the facility also include Société Générale, Paris, Zurich Branch, ING Bank N.V, GarantiBank International N.V and Banco do Brasil S.A, London Branch. Cofarco SA acted as advisor to CZ in this transaction.
With CZ’s 160-year history of sugar trading comes experience of managing global market volatility, economic cycles and multiple crises. Recently CZ has applied its skills and knowledge to expand its product portfolio, finding cost-effective and efficient solutions for clients in the sugar, beverage ingredients and packaging sectors. Against a challenging industry backdrop, it has experienced five consistent years of sustainable growth, with this facility’s launch creating a committed financial platform for existing business while enabling to free up bi-lateral capabilities for future growth.
Julian Randles, CFO of CZ, says: “We are proud that our long-standing financial partners have gone beyond our previous bilateral relationships to commit to a syndicate facility. The new 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 deploy freed up capacity to support us in this development.”
Karel Valken, Rabobank Global Head Trade & Commodity Finance Agri: “We are very proud to be a trusted partner of Czarnikow and its Sustainability Supply Programme Vive for over a decade. The unique proposition for Czarnikow as trade flow solutions provider in key origins allowed Rabobank and Natixis to arrange this Borrowing Base Facility, amplifying the skills of Czarnikow to optimize risk return. Innovation and sustainability are key strategic drivers for success and Czarnikow has all our support to continue its successful journey.”
Guillaume Genet, Global Head of Commodity Trade Finance at Natixis said: “CZ is a well-established leader in the sugar supply chain industry. As the company has experienced a consistent growth of its footprint in the origination markets, Natixis has been pleased to work with CZ and Rabobank to close this first Borrowing Base Facility. We are looking forward to strengthening our relationship with CZ through the Borrowing Base Facility, bilateral transactions but also a regular dialogue on CZ sustainability initiatives.”