KUALA LUMPUR (July 1): Yinson Holdings Bhd (KL:YINSON) announced that its floating production, storage and offloading (FPSO) unit Yinson Bergenia Production BV has successfully placed US$1.168 billion (about RM4.9 billion) in senior secured notes. The issuance marks the largest and longest-dated FPSO project bond ever.
The fully amortising notes carry a fixed coupon interest rate of 8.498%, payable semi-annually, with a final maturity period of 19.6 years. This means every six months, Yinson will make a payment that includes both some of the money they originally borrowed and interest, calculated at 8.498% per year.
Proceeds from the issuance will be used to refinance existing FPSO-related debt, fund reserve accounts, cover transaction costs, and provide distributions to Yinson Production Offshore Pte Ltd — the issuer’s shareholder.
Yinson Production's chief financial officer Markus Wenker said the transaction is a significant milestone for the group and a new industry benchmark. “Strong investor demand reflects confidence in our platform, strategy and the underlying project. This issuance enhances our capital structure and provides long-term value while offering noteholders exposure to a high-quality asset with robust downside protection and an uncapped investment-grade structure," he said.
The notes are backed by the FPSO Maria Quitéria, which is operating under a 22.5-year lease contract with Petrobras in Brazil’s Jubarte field.
The settlement of these notes is expected on July 7, 2025, with a subsequent listing on the London Stock Exchange’s International Securities Market under the Bloomberg ticker YPMQBR.
Moody’s has assigned a Ba1 rating on the notes, while Fitch put them on BB+.
At Tuesday's market close, Yinson shares were up four sen or 1.7% at RM2.39, giving the group a market capitalisation of RM7.68 billion.