(EnergyAsia, April 27 2012, Friday) — China Aviation Oil (Singapore) Corporation Ltd (CAO), Asia’s largest physical jet fuel trader, said it has secured a revolving debt facility for US$125 million from a syndicate of the Singapore branch of five major banks.
Known as book-running mandated lead arrangers (BMLAs), ABN AMRO Bank NV, ANZ Bank, Bank of Communications Co Ltd, Crédit Agricole Corporate and Investment Bank, and UOB Limited will provide the facility for CAO and its subsidiaries to use as working capital.
CAO said other banks, which it did not name, are considering joining the facility, which incorporates an accordion feature for this purpose.
Meng Fanqiu, CAO’s CEO, said: “This internationally syndicated loan facility marks an important milestone in the company’s expansion of its trading activities through the establishment of a global trading network and will provide a greater degree of operational flexibility. This transaction has also enabled the company to significantly expand its global banking relationships.”
CAO, the sole importer of jet fuel into China, and its wholly-owned subsidiaries, China Aviation Oil (Hong Kong) Company Limited and North American Fuel Corporation, also supply jet fuel to airports in Hong Kong, Taiwan, Singapore, Dubai, Bangkok, Hanoi, Los Angeles, Anchorage, Amsterdam, Frankfurt, London and Auckland, and trades jet fuel and other oil products.
Singapore-listed CAO owns stakes in strategic assets and businesses, which include Shanghai Pudong International Airport Aviation Fuel Supply Company Ltd and China National Aviation Fuel TSN-PEK Pipeline Transportation Corporation Ltd and Oilhub Korea Yeosu Co Ltd.