Monday April 20, 2020

New funding supported by FRP

Fast-growing marine fuelling business Sonan Bunkers (UK) Ltd is set to double its turnover after securing a new $10 million funding facility with the support of our Debt Advisory team.

Sonan Bunkers has agreed a new 18-month ABL facility with BREAL Zeta Commercial Finance in a deal that more than doubles the value of its previous funding. Sonan Bunkers was advised by Andy Pickford from our Debt Advisory team in Manchester.

Founded in 2014, Sonan Bunkers provides physical refuelling services to commercial marine vessels out of the Port of Rotterdam. In addition, the c$150 million turnover business offers a global broking and trading service for shipping clients from its offices in London, Rio de Janeiro, Athens, Singapore, Oslo and Rotterdam.

The export receivables finance facility provided by BREAL Zeta is expected to also boost the profitability of the business, with Sonan Bunkers continuing to trade well despite a period of turbulent oil prices and global disruption caused by COVID-19.

Andy Pickford, Director in our Debt Advisory team, said: “Bunkering is naturally a niche subsector and one that operates on fine margins. As such, it’s critical for Sonan Bunkers to have the right backers on board to support the next phase of their growth. Having explored options with a range of lenders, this deal represents an extremely positive outcome for their global team – particularly in the current climate – with the additional firepower likely to help them achieve their ambition of doubling turnover in the not too distant future.”

Ben Milner, Regional Business Development Director at BREAL Zeta, said: “We are absolutely delighted to support Sonan Bunkers with the optimal level of finance to drive its expansion. The platform to accelerate further profitable growth has been established and we look forward to supporting the business to achieve its future plans.”