Floating production, storage and offloading company Yinson Production has raised just over $1bn in its second bond issuance in just over a month.
The senior secured notes were issued by Yinson Boronia Production, which owns and operates the FPSO Anna Nery for Petrobras under a 25-year contract in the Marlim field offshore Brazil.
Yinson Production holds 75% and Japanese trading company Sumitomo Corp holds the remaining 25% of the shares in the issuer.
The notes, which will be listed on the London Stock Exchange’s International Securities Market, are fully amortising with a maturity of 18.2 years and were priced at a fixed coupon of 8.947%.
The proceeds from the fundraiser will go towards refinancing the existing outstanding debt of the FPSO Anna Nery maturing in 2026, Yinson Production said.
They will also go towards unwinding hedge arrangements, fund reserve accounts as applicable, pay for transaction-related fees and expenses and distributions to Yinson Production and Sumitomo Corp as shareholders of the issuer.
“The successful notes issue is a testament to the strength of the underlying asset and confidence investors have in Yinson Production as the best-in-class independent owner and operator of FPSOs,” said chief financial officer Markus Wenker.
“Refinancing the FPSO Anna Nery is another step in diversifying our funding base and optimising our capital structure to support further growth and drive long-term value for Yinson Production.
“At the same time, investors in the notes enjoy upside potential through the uncapped investment grade structure of the notes, whilst the strong credit fundamentals of FPSO Anna Nery provide downside protection,” he added.
Citigroup and Santander acted as global coordinators for the offering, while HSBC, ING, JP Morgan and Natixis acted as joint bookrunners. Mizuho, Ramirez & Co, Standard Chartered Bank and Bladex acted as co-managers.
Yinson Production recently chose the Nordic high-yield market as the venue for its debut $500m senior secured bond issue.
The five-year bond has a fixed coupon of 9.625% per year and will be listed on the Oslo Stock Exchange.
Yinson Production is said to be weighing a US IPO for its FPSO business as soon as 2026, Bloomberg reported earlier this year, quoting unnamed sources.
The Singapore-based company is a business of Kuala Lumpur-listed Yinson Holdings Berhad, a global energy infrastructure and technology company.
In addition to offshore energy, it is also active in renewable energy with Yinson Renewables, green technologies with Yinson GreenTech and sustainable investment and asset management with a company called Farosson.
