Macquarie Commodities and Global Markets and Nomura provide $US540 million term loan for Preem
London, 04 Dec 2019
- Preem is the largest oil refining company in the Nordic region
- Preem appointed Macquarie as coordinating mandated lead arranger
- Macquarie and Nomura worked together to deliver the $US540 million facility
- The majority of the term loan has been used to redeem existing notes
London 04 December 2019 – Today Macquarie Commodities and Global Markets (Macquarie) and Nomura, announced the closure of a $US540 million term loan facility with Corral Petroleum Sweden AB, a member of the Preem AB (Preem) group.
Preem is the largest oil refining company in the Nordic region, producing around 345,000 barrels per day. The company supplies gasoline, diesel, heating oil and renewable fuels to consumers across Europe. The company owns and operates two oil refineries in Göteborg and Lysekil in Sweden, which are among Europe’s most modern and environmentally efficient refineries
Preem is the largest producer of renewable fuels in Sweden after investing extensively in the production of hydrogen and renewable diesel (also known as hydrogenated vegetable oil or HVO), at its refinery in Göteborg. Preem is focussed on expanding this production capacity through further investments over the next decade to meet growth in demand associated with national and European environmental legislation. Preem will use the majority of the term loan to redeem existing bonds issued by its parent, Corral Petroleum Holdings.
Preem appointed Macquarie as coordinating mandated lead arranger, and Macquarie and Nomura worked together as mandated lead arrangers to deliver the facility. Macquarie is the leading bank active in commodity markets and provides financing and risk management services to a broad base of clients in the energy, metals and agricultural sectors.
Matthew Booth, Senior Managing Director in Macquarie’s Commodities and Global Markets Group said: “This is a landmark transaction for Preem, who have over the last few years made significant progress in creating more environmentally efficient refining facilities. We look forward to continuing to work closely with the company as it invests and continues to grow its clean fuels business.”
Luke Isherwood, Managing Director in Nomura’s Client Financing & Solutions Structured Finance team, said: “Preem’s complex term loan financing demonstrates the relevance that well-structured private credit has in today’s market for sophisticated underlying assets and companies. The collaboration between Preem, Nomura and Macquarie has set the groundwork for the future growth of the business and we look forward to remaining part of the story as Preem continues to develop its significant renewable projects.”
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About Macquarie Group
Macquarie Group Limited (Macquarie) is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs over 15,700 people globally. Macquarie’s assets under management (AUM) at 30 September 2019 were $A563.4 billion. For further information, visit www.macquarie.com
About Macquarie Commodities and Global Markets
Macquarie’s Commodities and Global Markets group provides clients with an integrated, end-to-end offering across global markets including equities, fixed income, foreign exchange, commodities and technology, media and telecoms.
The platform covers more than 25 markets with more than 200 products and has evolved over more than four decades to provide clients with access to markets, financing, financial hedging, research and market analysis, and physical execution.
Commodities and Global Markets also delivers a diverse range of tailored finance solutions globally across a variety of industries and asset classes.
Nomura is an Asia-headquartered financial services group with an integrated global network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its four business divisions: Retail, Asset Management, Wholesale (Global Markets and Investment Banking) and Merchant Banking. Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.