Yinson Prices US$1.458 Bln In Bonds To Refinance Agogo FPSO

KUALA LUMPUR, Oct 7 (Bernama) -- Yinson Production, the offshore production business unit of Yinson Holdings Bhd, has priced US$1.458 billion (US$1=RM4.08) in bonds to refinance its Agogo floating production, storage and offloading (FPSO) vessel off the coast of Angola.

In a statement today, Yinson Production said the offering represents the largest FPSO project bond to date and the first outside Brazil.

“The bonds, issued as senior secured notes by Yinson Azalea Production Pte Ltd, are expected to settle on Oct 21, 2026.

“The notes are fully amortising with a scheduled maturity of 13.3 years and were priced at 98.164 per cent of their principal amount with a fixed coupon of 6.517 per cent per annum, payable semi-annually,” it said.

Yinson Production said that the proceeds from the transaction will be used to, amongst other things, refinance the existing outstanding debt related to the Agogo FPSO, fund reserve accounts as required under the new bond issue (unless funded by a reserve account facility), pay for transaction-related fees and expenses, and make equity distributions from excess proceeds.

Yinson Production chief financial officer Markus Wenker said the company was very pleased with the strong support from institutional investors for the offering, its third FPSO project bond in three years, and sets a new benchmark as the largest FPSO project bond to date.

“It also represents an important milestone for the asset class as a whole, as this is the first FPSO project bond outside Brazil, broadening and diversifying the investable universe for investors seeking exposure to infrastructure assets backed by highly visible cash flows and strong counterparties.

“The transaction demonstrates the availability of long-term capital to the FPSO industry, reinforces the merits of the lease-and-operate model, and further strengthens Yinson Production’s capital structure,” he said.

-- BERNAMA