This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Trafigura Considers Reducing Interest Cap on Unpaid Share Buybacks
July 10, 2024
Trafigura is said to be facing years long worth of share buyback commitments, and the company is considering cutting interest rate cap on money owed to its shareholders. Trafigura’s employees are major shareholders, and the company uses buybacks as the main way of rewarding top traders. Its buybacks are typically determined by the most recent annual profit, with payments spread over the subsequent four years. Also, as employees leave, Trafigura buys them out in a series of instalments. After seeing large profits following the Russia-Ukraine war, the commodity industry has faced some headwinds. Last year, Trafigura bought back ~$6bn in shares, while earnings in the six-months to March fell 73% to $1.47bn. Also, a series of seniors have left the company over the past year, raising the buybacks expected in the future. Thus, to ease its financial burden, Trafigura sent several proposed amendments to its agreement with shareholders – including a cap on the interest it pays on committed but unpaid share buybacks at 2.5% vs. the existing level linked to market interest rates.
Trafigura’s bonds were trading stable with its 5.875% Perp at 99.2, yielding 6.6%.
For more details, click here
Go back to Latest bond Market News
Related Posts:Trafigura to Buy Puma Energy Stake for $600 Million
April 19, 2021
Trafigura announces Tender Offer for Purchasing Perp
September 14, 2021
Trafigura Announces Results of Tender Offer
September 24, 2021
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.