KUALA LUMPUR (April 19): Yinson Holdings Bhd, an oil-and-gas services firm, said on Friday that its indirect wholly owned subsidiary Yinson Production Offshore Pte Ltd (Yinson Production) has successfully placed a US$500 million five-year senior secured bond issue.
The bonds, issued under Yinson Production’s unit, Yinson Production Financial Services Pte Ltd, have a fixed coupon of 9.625% per annum in the Nordic bond market, according to Yinson’s bourse filing on Friday.
Yinson said “net proceeds from the bond[s] will be used to refinance Yinson Production’s existing corporate loan and for general corporate purposes”. An application will also be made for the bonds to be listed on the Oslo Børs in due course, it noted.
Markus Wenker, Yinson Production’s chief financial officer, said, “The bond issue received significant interest from investors and was substantially oversubscribed”.
He added that this reflects the compelling investment proposition underpinned by Yinson Production’s long-term contracts and highly visible cash flows, as well as the attractive FPSO market environment.
DNB Markets and Pareto Securities served as joint bookrunners, while ABG Sundal Collier acted as the joint lead manager in connection with the bond issue.
As at the fourth quarter ended Jan 31, 2024 (FY2024), Yinson had a net borrowing of RM13.31 billion, which is a substantial increase from the RM8.01 billion recorded in the financial year 2023 (FY2023).
Notably, Yinson has outstanding perpetual bonds amounting to RM1.3 billion. These include a five-year, 7.5% RM360 million sukuk with its first call date in the fourth quarter of 2027 (4Q2027), and a 15-year, 6.8% RM950 million sukuk, callable in May 2033.
It redeemed US$120 million (about RM567 million) worth of its outstanding perpetual bonds this month. These perpetual bonds were issued in March-April 2019, with a coupon rate of 8.1%.
Yinson, which has a charter order book for nine floating offshore vessels, also raised RM238 million through a private placement of 3.96% of its enlarged share capital this year.
This funding will be used for its renewable energy venture, which includes its fourth solar plant with a 97Mwp (megawatt peak) capacity in Peru, expected to begin operations in the third quarter of this year.
At Friday’s market close, Yinson’s shares ended nine sen or 3.69% lower at RM2.35, giving the company a market capitalisation of RM7.11 billion.