Glencore Xstrata taps banks for more credit

14th Jun 2013 07:12

Glencore Xstrata, the newly merged resources conglomerate, has signed revolving credit facilities worth 17.34bn dollars to support general corporate activity, replacing the previous facilities of the two companies before the merger.The facilities were initially launched at $12bn and closed substantially oversubscribed raising over $19bn, "due to strong support from Glencore's broad and deep group of relationship banks". A total of 80 banks have committed to the facilities."The strong result of syndication and the competitive terms achieved under this transaction demonstrate the widespread support across the banking sector for the newly merged company," said the group's Chief Financial Officer Steven Kalmin.The company signed a $5.92bn 12-month revolving credit facility, one of $7.07bn for three years and another $4.35bn for five years.