By Sarah Kent
LONDON--Trafigura Ltd., one of the world's biggest commodity
traders, has secured $1.5 billion in financing for an upfront loan
to Russian oil producer OAO Rosneft.
The prepayment facility, which provides a loan to pay for goods
in advance of delivery, is the largest Trafigura has ever completed
and three times larger than its previous largest loan of this
type.
The money will service an agreement Trafigura made with Rosneft
in June to provide $1.5 billion upfront for more than 10 million
tons of products over the next five years.
The deal is similar to other agreements Rosneft has secured from
trading houses, including Glencore International PLC and energy
trader Vitol, as it seeks to shore up its finances after its $55
billion acquisition of TNK-BP earlier this year.
Trafigura hopes the deal with Rosneft will support its ambitious
growth plans in Russia where it's seeking to compete with
well-established rivals. In September, it opened a Moscow-based
company called Trafigura Eurasia LLC, headed by former TNK-BP
employees. The company will trade oil, metals and bulk
commodities.
Write to Sarah Kent at sarah.kent@wsj.com; Twitter:
@sarahkentDJ
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