Aug 23, 2019
Modec do Brasil has completed the issuance of a US $ 1.1 billion bond to finance one of its vessels in Brazil, the FPSO Cidade de Mangaratiba, in operation since 2014 in the Iracema Sul area, in the Lula pre-salt area.
“This is the first public issuance to fund a Floating Production Storage and Offloading (FPSO), as well as being the first for the Brazilian offshore in the last five years and the largest offering of its kind for an infrastructure project in Latin America since 2017, ”said the company.
The FPSO unit is chartered for the BMS-11 consortium, formed by Petrobras (65%), Shell (25%) and Petrogal (10%) and is responsible for about 4% of all daily hydrocarbon production in the country, according to the company.
According to the Modec Japanese subsidiary the issue diversifies the company’s funding sources for offshore projects in the country, especially for FPSOs.
The expectation of the market is that Brazil will demand 20 to 30 new vessels of this type in the next five years, which would require investments of tens of billions of dollars, with the advance of pre-salt production.
Modec has other contracts with Petrobras, including in the Libra and Buzios areas.
The issuance, coordinated by Citigroup, and participation of Mizuho, Morgan Stanley and SMBC, was more than twice the planned amount, considering the registered demand.