Stampede to lend Glencore money

Glencore International has signed up for bigger than expected revolving credit facilities as financial institutions fell over themselves to lend money to the commodities trader.

The mining giant, which initially sought to borrow $10bn, ended up borrowing $12.8bn as a result of strong demand from financial institutions globally, resulting in a total of 91 banks pledging their commitment.

Chief Financial Officer Steven Kalmin said: "The successful renewal of our existing revolving credit facilities on attractive terms, demonstrates that ample funding remains available, in size, for companies such as Glencore, which are conservatively financed and have long and strong credit track records and banking relationships."

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The facilities comprise a $4,435m 14-month revolving credit facility with a 10-month term-out option and 10-month extension option, while $8,030m of the existing $8,370m three-year revolving credit facility has been extended for a further year to May 2015. Separately Glencore recently signed a $3.1bn syndicated loan backing the proposed merger with Xstrata, after raising $11bn in syndication from 31 banks.

The share price rose 0.23% to 430.20p by 14:22.

NR