Multi-billion dollar “margin calls” for commodity giant Trafigura, which is now looking for cash

Trafigura, one of the world’s leading oil and mineral trading companies, is looking for money to deal with Margin calls worth billions of dollars. In essence, creditors demanded that larger amounts be deposited as security for the loans granted. The demand came after the fluctuations in commodity prices in recent days, particularly due to the violent fluctuations in commodity prices. oil and nickel Which tripled in price in two days. According to reports from Bloomberg Trafigura, it has had failed contacts with the Blackstone Group and will also “investigate” the Apollo Global Management, Kkr and Black stone.

Merchants use bank credit to fund the purchase of shipments of goods they ship around the world. At the end of 2022, the group had $66 billion in lines of credit spread across 140 banks. Trafigura is not the only commodity trader subject to a “margin call”. Banks are everywhere Europe and the United States Bloomberg reported last week that it has been asked to offer credit packages to businesses looking to either find new lines or to increase existing lines of credit.

People familiar with the file said Trafigura is considering a number of different types of financing. Sell favorite posts Or other hybrid instruments in which the company may be able to enhance its capital without the entry of new shareholders. New sources of funding can give the Group the ability to take advantage of opportunities in a highly volatile market. In the first nine months of 2022, the company reported a profit of $3 billion. A few days ago, the group raised more than $1 billion in new funding. It’s a shipment of one million barrels Russian oil Later sold to the British company seashells at a big discount. The British company publicly apologized and announced its intention to allocate the proceeds of the operation to a fund for Ukrainian refugees.