Trafigura Group Pte Ltd (Trafigura), one of the world’s leading independent commodity trading companies has entered into an agreement for IFM Global Infrastructure Fund to invest in certain of Trafigura’s wholly-owned assets operating as Impala Terminals for an undisclosed sum and for a long-term partnership with global fund manager IFM Investors.
The 50:50 joint venture will own and operate a network of concentrates terminal infrastructure in Mexico, Spain and Peru, which play a key role in the movement of copper, lead and zinc in the global market. The joint venture will also include fluvial operations in Paraguay and a Swiss-based operation which provide global freight forwarding and multimodal transportation services in the African copper-belt for Trafigura and third-party clients.
The joint venture will also explore strategically growing the platform over time, including expanding the network with assets owned by Trafigura that are currently not included in the transaction perimeter.
“IFM Investors are an excellent global fund management company to partner with,” said Jeremy Weir, Executive Chairman and CEO of Trafigura. “They have a great depth of experience in investing in infrastructure projects and a successful track record of investing alongside other companies in our sector. Impala Terminals has a strong competitive position with the potential to expand in existing and new markets and through handling increased volumes from Trafigura and third parties. This was a good point to bring in a strong partner, while allowing Trafigura to re-invest the funds raised into new projects that will support our trade flows,” said Jeremy.
This agreement is subject to relevant regulatory approvals.
Citigroup served as financial advisor to Trafigura in relation to the transaction.