Yinson Production has placed $1.168 billion project bond to refinance floating production, storage and offloading (FPSO) Maria Quitéria, which is operating under a 22.5-year lease and operate contract with Petrobras in the Jubarte field, offshore Brazil.
The $1.168 billion 144A/Reg S senior secured notes were issued by Yinson Bergenia Production.
The notes are fully amortizing with a final maturity of 19.6 years and were priced at a fixed coupon of 8.498%, payable semi-annually.
The proceeds from the transaction will be used to, inter alia, refinance the existing outstanding debt related to the FPSO, fund reserve accounts as required under the new bond issue, unless funded by letters of credit, pay for transaction-related fees and expenses, and for distributions to Yinson Production as shareholder of the issuer.
The notes are expected to settle on July 7, 2025 and will subsequently be listed on the London Stock Exchange’s International Securities Market with Bloomberg ticker symbol YPMQBR.
“The successful placement of this project bond marks another key milestone in our journey in the international capital markets and sets a new benchmark in the industry – being the largest and longest-dated FPSO project bond ever issued.
“The exceptionally high demand is a strong endorsement of our platform, our strategy, and the strength of the underlying project and reflects the investor community’s growing appetite for this asset class.
“With this bond issue, we further strengthen Yinson Production’s capital structure and create long-term value, while offering noteholders exposure to a high-quality asset with robust downside protections and an uncapped investment grade structure,” said Markus Wenker, Chief Financial Officer, Yinson Production.
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