Trafigura Raises $1.5 Billion to Finance Rosneft Supply Deal

   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 [e-mail]; Twitter: @sarahkentDJ

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