Paris team advises lenders in an innovative borrowing base facility to support Gunvor’s carbon trading activities

Global law firm Norton Rose Fulbright advised MUFG bank (MUFG) and Natixis Corporate and Investment Bank (CIB) and two other international lenders, in the signing of an uncommitted borrowing base facility of up to €240 million to support trading activities on the European Union Emissions Trading System (EU ETS).

The Facility, signed by Gunvor Group, a leading global physical energy trading company, includes a EUR 100 million accordion feature, is scalable and secured, and will cover all working capital requirements from purchase-to-sale of EU allowances, including the associated derivative positions.

It is a ground-breaking deal as one of the first borrowing base facility relying solely on EU allowances through an acceptable security package.

MUFG and Natixis CIB served as Mandated Lead Arrangers, respectively acting as Documentation Agent and Facility & Security Agent of the Facility.

Credit Suisse served as Arranger and ING joins as Participant.

Norton Rose Fulbright advises clients on the full range of climate change and sustainability matters. The firm is also committed to operating sustainably and supporting the Energy Transition towards Net Zero, taking direct action to support United Nations Sustainable Development Goal 13: Action on Climate Change.

The Norton Rose Fulbright team advising lenders on this operation was led by Paris-based Trade finance partner Janet Butterworth and Global Head of Energy Anne Lapierre. The team was assisted by Energy Counsel Véronique Bruel.