London team advises on upsizing Gunvor natural gas repo facility to €570m

Global law firm Norton Rose Fulbright has advised Brightfield Trading (Brightfield) on the structuring of a €570m syndicated repo facility led by Brightfield for Gunvor Group, focusing on natural gas storage across Europe.

The working capital transaction consists of a syndicated, pan-European natural gas repo facility covering multiple jurisdictions in Europe, with a shared security package. This facility has been supported by eight banks, enabling the arrangement to expand to cover eight eligible natural gas storage locations, up from three.

Coöperatieve Rabobank U.A. (Rabobank) acts as coordinating agent and trustee of the facility, as well as lead participant. Other participants include UBS Switzerland AG; CA Indosuez (Switzerland) SA; ING Bank N.V Amsterdam, Geneva branch; Raiffeisen Bank International AG; Erste Group Bank AG; Die Sparkasse Bremen AG; and Mizuho Bank, Ltd.

Brightfield is a commodity trading subsidiary of Rabobank, an international financial services provider offering retail banking, wholesale banking, private banking, leasing and real estate services. Gunvor is a Geneva-based energy trader, operating across physical natural gas markets and maintaining an investment portfolio in the industry that spans the transportation, pipelines, storage, and regasification sectors.

Norton Rose Fulbright banking and finance partner Nick Grandage, who led on the deal, said:

“This agreement is a standout achievement at such a pivotal moment for the energy market, as it facilitates a significant increase in capacity and flexibility for natural gas storage capabilities. We are pleased to have supported such an innovative transaction.”

Robin de Milliano, senior product manager with Rabobank’s structured inventory product team, said:

“The expertise and creative thinking of Norton Rose Fulbright’s banking and finance team have been essential in devising the legal framework for this unique structure which has now proven robust and delivered on its promise to upgrade the transaction by expanding the number of participating banks as well as eligible storage locations across Europe. An excellent achievement in a difficult market environment that both Brightfield and Gunvor are very satisfied with.”

The Norton Rose Fulbright team was led by Nick Grandage, alongside associates Raven Chua and Alexandra Semykina, and trainee solicitor Craig Langsdale, working with the firm’s offices and correspondent firms across Europe.

The firm’s banking and finance practice advises across the full spectrum of legal banking and financial service sectors, acting for parties ranging from multinational lenders to growth corporations and leading on numerous complex, cross-border banking and finance transactions for some of the world’s most prominent financial institutions and corporations.