KUALA LUMPUR (June 23): Yinson Holdings Bhd (KL:YINSON) has announced that its floating production, storage and offloading (FPSO) unit, Yinson Bergenia Production BV, is considering the issuance of up to US$1.2 billion (RM5.15 billion) in bonds.

Yinson Bergenia operates the FPSO Maria Quitéria, which is deployed under a 22.5-year fixed-rate charter with Petróleo Brasileiro SA (Petrobras). The vessel is located in the Jubarte Field within Brazil’s offshore Campos Basin, where Petrobras holds exclusive exploration rights.

The proposed senior secured notes will have a final maturity of 19.6 years and a weighted average life (WAL) of 12.2 years, according to Yinson in a bourse filing. Both terms measure the duration of the debt. The final maturity is the date when the entire principal amount of a debt is due for repayment, while WAL represents the average time until each dollar of principal is repaid, taking into account the timing and amount of all principal payments.

These notes will be secured by a first-priority lien on all of the issuer’s assets and equity interests. They are expected to receive credit ratings of Ba1 from Moody’s and BB+ from Fitch.

Yinson said the offering has not been registered under the US Securities Act of 1933, as amended. Consequently, the notes may not be offered or sold in the US or to US persons without registration or an applicable exemption.

Yinson Production Offshore Pte Ltd has appointed Citigroup and JPMorgan as global coordinators, along with HSBC, ING, Santander and Standard Chartered Bank as joint bookrunners. This team will arrange a series of virtual fixed income investor meetings, starting Monday (June 23).

Yinson Bergenia, the issuer, will be available for one-on-one and group calls upon request, with Citigroup coordinating the logistics.

At Monday’s close, Yinson shares were up one sen or 0.4% at RM2.38, valuing the group at RM7.33 billion. Year to date, the stock has fallen over 9%.