Trafigura Securitisation Finance Plc (“TSF”), a receivables securitisation vehicle of Trafigura Group Pte Ltd (“Trafigura”), has successfully priced a new series of notes (“TSF 2021-1”) on the 144A/RegS Asset-Backed Securities (“ABS”) market. This is Trafigura’s sixth public ABS transaction since the inception of the programme in November 2004.

TSF has since become the largest AAA/Aaa publicly rated securitisation programme of trade receivables in the world. It offers investors rare access to a blended portfolio of short-term credit exposure on oil majors, non-ferrous metals and minerals purchasers and highly rated banks.

A total of USD300 million of public notes (3-year tenor) were placed with US investors including: USD139.5 million floating rate Class A1 notes (AAA/Aaa) at 1m Libor +53bps, USD139.5 million fixed rate Class A2 notes (AAA/Aaa) at mid-swap +55bps and USD21 million fixed rate Class B notes (BBB/Baa2) at mid-swap +125bps. Many of the original investors from the previous transaction (TSF 2018-1) participated in the new offering.

The transaction was well received with participation from a total of 16 investors in the fixed and floating rate tranches. The transaction was announced on 14 July and successfully priced on 16 July, with oversubscription on both the Class A and B notes (subscription levels of Class A: 1.2x, Class B: 2.3x).

Laurent Christophe, Trafigura’s Group Treasurer, said: “For the sixth time since our first issuance in the public markets in 2007, we were able to successfully tap the ABS market from our flagship TSF programme. The successful pricing of TSF 2021-1 demonstrates not only the attractiveness of trade receivables as an underlying asset class which is rarely offered in public markets, but also the quality of the structure. Investors were mindful of the strong performance of the programme during the COVID-19 pandemic, proving once again its resilience.

“The TSF programme is now well known to institutional investors and we were pleased to attract significant interest in this new series, particularly during the busiest week of ABS issuance this year. We are committed to the ABS market and will continue to issue new series from TSF on a regular basis. We also plan to bring more diverse offerings originated by Trafigura to the ABS market such as our inventory securitisation programme,” concluded Laurent Christophe.

SMBC (Bill & Deliver), Citi and Société Générale (Structuring) acted as Joint Lead Managers, with Natixis, Mizuho and MUFG as Co-Managers on the transaction.

 

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