Yinson unit issues US$1.168bil project bond to refinance FPSO vessel


KUALA LUMPUR: Yinson Holdings Bhd’s subsidiary Yinson Production has successfully placed a US$1.168 billion project bond to refinance the floating production, storage and offloading (FPSO) vessel Maria Quitéria.

Yinson Production is a global energy infrastructure and technology company active in offshore energy.

In a statement today, Yinson Production said the notes were issued by its subsidiary Yinson Bergenia Production BV, the owner of the FPSO, which is operating under a 22.5-year lease and operate contract with Petrobras in the Jubarte field, offshore Brazil.

"The notes are fully amortising with a final maturity of 19.6 years and were priced at a fixed coupon of 8.498 per cent, payable semi-annually.

"The proceeds from the transaction will be used to refinance the existing outstanding debt related to the FPSO, fund reserve accounts as required under the new bond issue (unless funded by letters of credit), pay for transaction related fees and expenses, and for distributions to Yinson Production as shareholder of the issuer,” it said.

It said that the notes are expected to settle on July 7, 2025 and will subsequently be listed on the London Stock Exchange’s International Securities Market.

Yinson Production chief financial officer Markus Wenker said it is the largest and longest-dated FPSO project bond ever issued.

"With this bond issue, we further strengthen Yinson Production’s capital structure and create long-term value, while offering noteholders exposure to a high-quality asset with robust downside protections and an uncapped investment grade structure,” he said.

Credit rating agencies Moody’s and Fitch have assigned the notes credit ratings of Ba1 and BB+ respectively, reflecting the FPSO’s strong credit fundamentals and its strategic importance to Petrobras.

Citigroup and JP Morgan acted as global coordinators for the offering, while HSBC, ING, Santander and Standard Chartered Bank served as joint bookrunners. - Bernama 

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Yinson , FPSO , Brazil , Vessel , Bond ,  Markus Wenker

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