BB Energy Asia successfully closes inaugural USD210mn secured digital borrowing base facility

BB Energy Asia, a wholly-owned subsidiary of BB Energy Group Holding Ltd, has closed a USD210 million Secured Digital Borrowing Base facility (“Facility”) to support the working capital needs of its Asian trading business. 

The 364-day Facility, guaranteed by BB Energy Group, is the first digital borrowing base facility for the Group outside the USA, covering import finance as well as funding of inventory, receivables, and hedging positions under its wholly owned subsidiary, BB Energy Asia. 

The facility, which was launched initially at USD150 million, was largely oversubscribed and successfully closed at USD210M. Natixis CIB Singapore has been appointed as the Facility and Security agent, and the other participating banks were: Arab Petroleum Investments Corporation (APICORP), MUFG Bank Ltd Singapore, Abu Dhabi Commercial Bank PJSC, Arab Banking Corporation B.S.C. Singapore and Credit Agricole Corporate and Investment Bank Singapore.  

This successful closing marks a significant milestone for BB Energy Asia and demonstrates the unwavering confidence in BB Energy Group’s creditworthiness and business prospects.  

Anbu Ramasamy, Regional CFO, APAC, at BB Energy Asia, said: "We would like to express our gratitude for the commitment and support from our existing banking partners as well as the new participating banks.  The launch of our inaugural Secured Digital Borrowing Base Facility is a testament to the robust confidence we have built with our banking partners, which is founded on our financial strength, strategy, governance and commitment to responsible trading.”

“The facility is underpinned by a cutting-edge digital trade platform through our partnership with KOMGO and SGTraDex, reflecting BB Energy Group’s commitment to transparency and operational integrity. Embracing digitalisation is paramount to a strong governance and gives liquidity providers confidence to extend financing more securely and efficiently. This strategic development marks a significant milestone for the Group, enhancing and diversifying our liquidity base, through accessing additional capital so we can seize immediate market opportunities, manage fluctuations in working capital, and solidify our overall financial stability,” added Ramasamy. 

L-Thanh Nguyen, Head Global Trade Asia Pacific, Natixis Corporate and Investment Banking, said: “We are proud to be entrusted by BB Energy Asia to lead, arrange, structure and execute this inaugural Secured Digital Borrowing Base facility for BB Energy Group.  This transaction not only highlights Natixis CIB’s ability to provide innovative and tailored financing solutions, but also underscores our commitment to supporting our clients through their digital transformation journeys, while improving efficiency and staying ahead of competition.” 

“Together with BB Energy Asia and Natixis, we build a digital framework using reliable and transparent third-party data. Automating the compilation and checks of this data also translates into enhanced integrity, ensuring greater transactional security for all participants whilst operational efficiency and an opportunity to focus on quality analysis are established. This is the added value at the core of digitalization,” said Nicolas Djelalian, Managing Director, Komgo Pte Ltd.

Kelvin Ling, Head of Business Development and Operations at SGTraDex, shared: "Congratulations to BB Energy Asia and Natixis for the successful conclusion of this inaugural digital borrowing base financing facility in the region. SGTraDex provides the essential data exchange infrastructure, ensuring security and interoperability, allowing all parties to be connected to the larger ecosystem in a more efficient and secure manner. This is a significant development in the industry which showcases that digitalization can bring about enhanced connectivity, fosters trust and transparency in trade. Together with our partners BB Energy, Natixis and Komgo, we call to the industry to usher in a new era of digitalization in the trading and financing sector."

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