Underlining the commitment of its banking partners and their confidence in its integrated business model and risk management capabilities, MET Group has been awarded the “European Commodity Finance Deal of the Year” award by TXF for its Borrowing Base Facility.
Each year, TXF, a leading commodities and trade finance news, research insights and data intelligence provider, recognises ten outstanding transactions (TXF’s Perfect 10 Awards) in the export and commodity trade finance industries. The outcome is decided by a panel of judges and peer voting.
The Borrowing Base Facility (BBF) for which MET has been rewarded was signed in 2023 with an original volume of EUR1.23 billion.
This unique facility was structured together with MET Group’s finance team and led by ING Bank N.V. as coordinator, security and facility agent, joined by Natixis CIB and Société Générale as active bookrunning mandated lead arrangers.
The BBF was largely oversubscribed and closed at EUR1.33 billion from a syndicate of 16 international banks.
This new facility provides MET Group with the working capital funding, depth and flexibility that the company requires to continue on its growth trajectory.
MET is one of the fastest growing energy companies in Europe, present in 15 countries through subsidiaries, 30 national gas markets and 39 international trading hubs.
MET Group recorded the second-best financial results in its corporate history in 2023. Throughout last year, the energy company was again able to leverage the strength of its integrated sales and trading business model on the back of a consolidated revenue of EUR24.5 billion.
© Supplied by MET GroupA distinctive feature of the BBF is the financing of LNG imports, gas storage operations as well as distribution of natural gas and power across several European countries and the possibility to further expand to other locations.
Within its sales and trading segment, MET Group continued to extend its activities, most prominently by entering the French market in 2023.
MET also continued to grow its LNG business, having the most diversified LNG import structure from a geographical perspective in Europe. The Swiss-based company has long-term capacities in Germany, Spain and Croatia, having imported into eight different countries – including the Mediterranean (Greece, Italy, Croatia, Spain), Northwest Europe (UK, Belgium, Germany) and the Nordic region (Finland).
MET delivered about 2 mtpa (30-40 cargoes per year) over the last two years.
2023 saw the opening of MET’s office in Singapore. MET Asia, a subsidiary owned 90% by MET Group and 10% by Keppel, will focus on developing the Group’s LNG portfolio while also actively pursuing local asset strategies.
In addition, MET Group’s competence in natural gas and gas-based power generation helps to support the energy transition towards a net zero-carbon world. Since renewable power production is weather-dependent, some flexibility is indispensable to balance the electrical grid. While batteries and other storage solutions mature towards cost competitiveness, natural gas remains a key transition fuel to enable the necessary generation flexibility.
Sven Kirch, group CFO and member of the board of directors of MET Group, stated: “I am very pleased with the European Commodity Finance Deal of the Year award as it illustrates our ability to innovate not only in our gas and power sales and trading products, but also in our funding strategies. I appreciate the confidence our banking partners have in our integrated business model and our risk management capabilities. This award recognizes the excellent ongoing collaboration.”
Reflecting the continuous growth, MET Group now employs close to 1,000 employees across 15 countries, representing more than 50 nationalities.