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Treasury & Capital Markets
Yinson secures US$720 million loan for FPSO
Deal incorporates gas flaring reduction and other features to meet transition finance requirements
The Asset 7 Oct 2022

Yinson Holdings, an energy infrastructure and technology firm based in Kuala Lumpur, has secured a US$720 million syndicated loan facility for a floating production, storage and offloading (FPSO) project in Brazil.

The six-year limited recourse loan will be used to support the ongoing construction of FPSO Maria Quitéria, which was awarded by Petrobras in November 2021.

Yinson Bergenia Production B.V., the group’s Netherlands-based subsidiary, signed the loan agreement with ING Bank, Singapore Branch, Maybank Group, Natixis Corporate & Investment Banking, Standard Chartered Bank (Singapore) and United Overseas Bank as mandated lead arrangers, underwriters and bookrunners.

The agreement was also signed by Hongkong and Shanghai Banking Corporation Limited and J.P. Morgan, which are participating as mandated lead arrangers.

Standard Chartered says the project marks the first transition finance facility for an FPSO system underwritten by the bank.

Henrik Raber, global head of credit markets at Standard Chartered, comments: “This is a milestone in the bank’s transition finance journey, which demonstrates our commitment in responding to the urgent need to transition to a low-carbon world while supporting the markets and sectors that are driving economic growth.”

Raber notes that the facility incorporates technologies including those that aim to contribute to the reduction of flaring from the oil and gas field. This meets the parameters for the bank’s transition finance framework to achieve the corresponding labelling, he adds.

Yinson Group chief strategy officer Daniel Bong says: “The FPSO financing space has been very competitive, as many postponed oil and gas developments have resumed post-pandemic and investor appetites have evolved with energy transition agendas. Thus, the success of this deal is remarkable, assuring us that our robust business model and proven capabilities have earned the confidence of our stakeholders.”

Flemming Grønnegaard, Yinson’s chief executive officer of offshore production, says the project team’s excellent track record of asset delivery, safety and operations was crucial in cementing the support of the banks for the facility.

The FPSO Maria Quitéria is the group’s second project for Petrobras. “The first asset has been able to meet the project schedule thus far and is on track for first oil in early 2023, despite the significant challenges brought about by the pandemic,” Grønnegaard says, adding that the latest project is progressing according to schedule.

FPSO Maria Quitéria is intended for the Jubarte field for the Parque das Baleias Integrated Project, located in the northern part of the Campos Basin offshore Brazil.

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