Hours after completing the purchase of Lindsey Oil Refinery, new owner Prax Group has secured fuel and finances.
Trafigura has been brought in to exclusively handle crude oil and feedstocks arrangements for the South Humber Bank plant, while a new £539 million fund has also been established.
The deal for the 500-acre Total facility was agreed in July, completing on Monday.
HSBC was mandated as arranger of the funds, with it, Citibank, JPMorgan Chase Bank and Royal Bank of Canada as senior note purchasers.
Robin Edwards, chief financial officer at Prax, said: "This new source of funding is an important milestone for the group and will provide it with a solid platform from which to execute its strategic objectives and to support its future growth plans.
“The launch of a new securitisation facility, particularly amidst the backdrop of a challenging economic environment, serves to highlight the strength of our business model, and the confidence that the securitisation participants have in our management team and our vision for the future.
“We are very appreciative of their support in providing this commitment to the group."
As reported, Lindsey Oil Refinery had been reliant on a loan from its Paris parent to continue operations, with the demand for aviation and road fuel plummeting the pandemic.
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When it comes to oil, it will use the independent employee-owned market leader in the commodities industry for the entire requirements of the refinery.
Sanjeev Kumar, chief executive of Prax, said: "This arrangement is an important step in the Group's plans for the long-term growth of the refinery and it will pave the way to further strengthen our long-term relationship with Trafigura. It will provide operational and planning flexibility, helping us to continue to deliver an excellent level of service to our customers.”
The North Killingholme refinery has an annual production capacity of 5.4 million tonnes. An optimal range will be sourced.
Jose Maria Larocca, executive director and co-head of oil trading for Trafigura, said: "Trafigura is delighted to be working with the Prax Group following their new refinery acquisition. We're committed to supporting our customers by providing access to the best opportunities available in the global commodity markets."
Trafigura has a presence in 48 countries.