Trafigura Seeks Funding as Commodity Surge Triggers Margin Calls – Bloomberg News | Investment News

(Reuters) – Global commodities trader Trafigura Group has been in talks with private equity groups to secure additional funding as soaring prices trigger margin calls in the commodities industry, Bloomberg reported. News Tuesday.

Trafigura faced billions of dollars in margin calls last week, the report said, citing people familiar with the matter.

The increase in margin calls – essentially requests to deposit additional funds with brokers – comes amid heightened volatility in commodity prices after the invasion of Ukraine by the Russian export giant raw materials triggered sanctions from the United States and its allies.

Trafigura had been in talks with Blackstone Inc for an investment of around $2 billion to $3 billion in preferred shares or a similar hybrid instrument, according to the report, adding that the talks failed however and no agreement. was made.

Blackstone declined a request for comment from Reuters.

The report also says Trafigura has approached Apollo Global Management Inc, BlackRock Inc and KKR & Co to seek new funding.

“As part of a longer-term strategy to diversify our sources of funding, we have entered into relationships with other capital providers,” Trafigura said in a statement emailed to Reuters. “We regularly engage with alternative capital providers on debt and equity opportunities across the business.”

Apollo, KKR and BlackRock also declined to comment.

Earlier this month, Trafigura announced it had raised a $1.2 billion revolving credit facility from a consortium of banks to increase its funding pool to weather soaring energy prices. and raw materials.

(Reporting by Shubhendu Deshmukh, Akanksha Khushi and Akriti Sharma in Bengaluru; Editing by Shailesh Kuber)

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