Yinson secures US$670mil loan for FPSO Anna Nery project

(New Straits Times Press) Yinson Holdings Bhd, through its wholly-owned Singapore-based subsidiary Yinson Production Offshore Pte Ltd (YPO), together with its project partner Sumitomo Corporation (SC), signed a US$670 million syndicated loan facility for the FPSO Anna Nery project, with ING, Natixis and Standard Chartered Bank as underwriting banks.

The agreement was also signed by AmBank, United Overseas Bank Ltd, Mizuho Bank Ltd and the Hongkong and Shanghai Banking Corporation Ltd (HSBC), participating as senior lenders.

Yinson will use the five-year limited recourse loan to refinance an existing US$400 million bridge loan received in September 2020.

The loan will also support FPSO Anna Nery’s ongoing construction, a floating, production, storage and offloading (FPSO) project awarded to Yinson by Petróleo Brasileiro S.A. (Petrobras) in October 2019.

Sumitomo owns a 25 per cent stake in the project.

Yinson group chief strategy officer Daniel Bong said this deal, which is believed to be the first of its kind in the FPSO financing space, was made possible through its long-standing strong relationships with the underwriting banks.

“Yinson sealed the deal amid significant challenges in the FPSO financing space, which have been compounded over the past year by the ongoing Covid-19 pandemic and evolving investor appetites due to the energy transition.

“The success of this deal is a testament to the investor community’s confidence in Yinson’s ability to continue delivering on our commitments and in the robustness of our business strategy,” he said in a statement today. 

The investment community has positively received the deal, with several banks expressing interest to participate, including Export-Import Bank of Malaysia Bhd, which is expected to participate in the syndication phase.

Daniel also acknowledged that the strong teamwork between all parties was instrumental to the success of the deal.

“Our sincere appreciation goes to our project team, corporate team, underwriting banks ING, Natixis and Standard Chartered Bank, senior lenders, project partner Sumitomo and client Petrobras for showing such a great commitment towards the success of this mini-perm. Indeed, this is a case of teamwork making the dream work,” he said. 

Yinson’s chief executive officer of offshore production Flemming Grønnegaard said the project team’s continuing ability to meet construction milestones was crucial in cementing the support of the underwriting banks for the mini-perm.

“With the support of our client, contractors and subcontractors, we are pleased to have reached the halfway mark of the engineering, procurement, construction, installation and commissioning (EPCIC) phase of construction as per schedule despite challenging circumstances exacerbated by the pandemic.

“We have recently completed the final drydocking campaign at Cosco shipyard in China and are well on track for delivery in the last quarter of 2022,” he said. 

The FPSO is destined for the Marlim field located in the eastern part of the Campos Basin, about 150km offshore in Rio de Janeiro, Brazil.

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