Trafigura signs $1bn, seven-year oil prepayment with Republic of Gabon

Deal overview

Trafigura signed a USD1 billion prepayment agreement with the Republic of Gabon in exchange for future crude oil deliveries over a seven-year term and will act as the exclusive offtaker of Gabon’s Profit Oil for the duration of the agreement.

Assets and use of proceeds

The oil underpinning the prepayment comprises production from across petroleum sharing contracts and draws on a diversified pool of producing assets and operators. The Republic of Gabon will deploy the proceeds to advance its development agenda.

Market context and syndication

The transaction builds on Trafigura’s record of providing structured financing and logistics solutions to sovereign and corporate counterparties. Trafigura has commenced a syndication process to distribute a portion of the exposure among international financial institutions.

Official comments

Trafigura’s Global Head of Structured Finance said the agreement continues the companies’ long-standing trading relationship and demonstrates the firm’s ability to structure large-scale financing solutions. Gabon’s Minister of Economy, Finance, Debt & State Holdings welcomed Trafigura’s return, said the deal aims to optimise the country’s oil resources, strengthen the central bank’s foreign exchange reserves and facilitate proactive treasury management, and thanked the strategic, financial and legal advisors for work completed in record time.