Yinson Production successfully places US$500mil bond issue

KUALA LUMPUR: Yinson Production Offshore Pte Ltd (Yinson Production) has secured a successful placement of a US$500 million senior secured bond issue, marking its debut in international capital markets.

The company is an independent owner and operator of floating production, storage and offloading (FPSO) vessels worldwide.

Yinson Production said the bond issue, with a five-year tenor and a fixed coupon of 9.625 per cent per annum, was well received in the Nordic bond market.

"The net proceeds from the bond issue will be used to refinance Yinson Production’s existing corporate loan and for general corporate purposes. An application will be made for the bond to be listed on Oslo Børs in due course,” it said in a statement today.

Yinson Production chief financial officer Markus Wenker said "with this inaugural bond issue in the Nordic bond market, the company has successfully expanded its financing toolkit and further broadened the company’s funding base.”

"The bond issue received significant interest from the investor community and was substantially oversubscribed, reflecting the compelling investment proposition underpinned by our long-term contracts and highly visible cash flows as well as the attractive FPSO market environment,” he added. - Bernama