HOUSTON, November 8, 2021 / PRNewswire / – BB Energy, an independent global energy trading company, has successfully concluded a $ 500 million Senior secured revolving borrowing base credit facility (the “Facility”).
Based on an initial launch size of $ 450 million, the Facility was oversubscribed with commitments received from a diverse group of 8 lenders. The Facility has also incorporated a $ 150 million accordion function available to support future growth.
ING Capital LLC acted as joint lead manager and bookrunner in the syndication and will act as administrative agent for the facility. Natixis acted as Joint Lead Arranger and Citibank, NA as Cash Management Bank.
Financial Director of BB Energy, Jacques Erni commented: “Given the exceptional times the global economy is going through, we are very proud to announce a landmark achievement in the history of BB Energy. This borrowing base is the foundation of BB Energy United States, to reach our next level of growth. A huge thank you to our partner financial institutions and to the new participants in this facility which underlines their high level of confidence in our capabilities and bodes well for our strategy of diversification and injection of fresh liquidity into our platforms. “
First digital borrowing base in the United States made with Komgo
The deal is the first U.S. digital debt base completed by BB Energy through a partnership with Komgo, a fintech headquartered in Switzerland and owned by a number of leading trade finance institutions and ING Capital LLC, l ‘one of the main lenders of commodity finance.
Fraud continues to be a top concern for commodity lenders when granting credit. Using blockchain technology, Komgo increases visibility by connecting with third-party vendors, providing real-time data, and generating a complete view of the company’s trading portfolio and collateral backing their credit facility. Thanks to Komgo’s digital agent, lender and creditor can exchange secure and credible information, facilitate straightforward processing and reduce operational burden.
“The collaboration with Komgo demonstrates our common goal towards absolute transparency and enhanced integrity through digitization”, continued Erni. “Using Thanks to Komgo’s system, we are able to provide business and collateral data on demand – a process that historically has been done manually. “
“As lenders increasingly prioritize collateralized security, we are seeing these types of facilities become more and more popular. As a result, financial officers will need support to more effectively manage the workflows and information exchange required in an increasingly complex environment ” said Souleïma Baddi, CEO of Komgo. “There is so much data involved that agents need someone to help them extract useful information and make faster, more informed decisions. Komgo is at the forefront of this transformation, providing expertise and intelligent monitoring. “
ING was one of 15 financial institutions, commodity companies and trading companies to launch Komgo in 2018.
“As the first investor in Komgo, it is a great achievement to lead this unique transaction for BB Energy; a company at the forefront of innovation in raw materials ”, said Caue Todeschini, Head of Trade & Commodity Finance Houston for ING. “Komgo’s use of third-party data reduces the risk of fraud in the commodities industry – which remains largely dependent on self-declaration of collateral positions by the borrower.”
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Overview of BB Energy Group Holding SA
BB Energy (“BBE or the Group”) was created by the Bassatne family who started a raw materials business in Lebanon in 1937, trade in cereals and asphalt. In 1963, they entered the petroleum sector by Lebanon and were mainly involved in the local marketing of petroleum products and the import of bitumen. In 1968, they began trading oil in the Mediterranean, Red Sea, and Persian Gulf.
The Group is led by experienced traders and professionals from the petroleum industry. BBE is a dynamic, independent global oil trading company with key shopping centers in London, Dubai, Singapore and Houston and approx. 300 employees in 16 sales offices around the world and approx. 450 employees including our downstream activities.
Starting from its main Mediterranean markets, the Group has developed over the past decades its commercial presence in the regions of the Red Sea, the Black Sea, South East Asia, and more recently the Americas. Today, its business activities span all five continents. Over the past 5 years, BBE has opened offices in Istanbul, Moscow, Lagos, Accra, Casablanca and Harare further develop its commercial activities in these regions.
BB Energy’s global trade flow portfolio has grown steadily in recent years, reaching traded volumes of crude oil, petroleum products and gas of approx. 33 million tonnes in 2020. The Group supported the growth in the volume of trade by concluding new trade financing agreements with local and international banks.
Komgo is a Switzerland-based software development and technology services company providing industry-leading digital network and workflow solutions for the trade finance industry. Its global customer base is supported by offices in Singapore, Geneva, London, and Houston.
Komgo eliminates the need for manual and paper-based processes, mitigates the risk of fraud, provides an industry benchmark data benchmark, and delivers the best value to end users through tailored digital experiences.
About ING Capital LLC
ING Capital LLC is a financial services company providing a full range of wholesale financial lending products and advisory services to its corporate and institutional clients. ING Capital LLC is an indirect US subsidiary of ING Bank NV, which is part of ING Groep NV (NYSE: ING), a global financial institution with a strong European base. ING Bank’s goal is to empower people to stay ahead in life and in business. ING Bank’s more than 53,000 employees provide retail and wholesale banking services to customers in more than 40 countries. Please note that neither ING Groep NV nor ING Bank NV have a banking license in the United States and therefore are not authorized to carry out banking activities in the United States.
SOURCE ING Capital LLC