IBTimes UK

Singapore's Noble Group has agreed a deal to raise $3 billion in bank credit facilities as it looks to tide over refinancing hurdles, Reuters has reported.

The commodity trader, which was battered by a $1.2 billion writedown on weak coal prices last year, will have to pay the highest interest rates in its history, the agency reported, citing sources.

The new funds will be used to refinance and combine two existing loans including a $1.1 billion letter of credit facility and a $1 billion existing revolver.

Noble Group said in February it had a $1.67 billion loss for 2015, its first annual loss in almost two decades.

The loss followed a steady decline in its share prices following an accounting scandal. Noble, one the world's largest traders of commodities, was accused of inflating its assets by billions of dollars, a claim it rejected.

In December, Standard & Poor's and Moody's had cut Noble's investment grade ratings to junk following the scandal.

Noble shares fell 14 percent on Monday after Fitch Ratings put it on watch for a potential downgrade.

Societe Generale , Mitsubishi UFJ Financial Group, ING and HSBC are among as many as eight banks that will act as lead arrangers for the financing, Reuters said.

IBTimes UK