Yinson production, based in Singapore, recently released a record unit of $ 1.168 billion for the floating unit for storage, storage and unloading (FPSO) in Brazil.
This represents the largest FPSO project link and the longest history so far, the longest organized financing bond in Brazil, and the highest request for a request for FPSO project bonds.
Yinson Production used the project to secure long -term financing for the main assets (FPSO Maria quitéria) part of an integral part of Petrobras external operations in Brazil. This financial strategy improves the capital of Yinson’s capital and attracts a wide range of institutional investors.
According to Yinson Financial Director Marcos Winker, FPSO project bonds are popular with investors due to their long-term contracts (usually 15-25 years), which provides clarity of high cash flow and flexibility. These assets are necessary for oil companies, providing strong protection on the negative side against the failure to pay. Despite the financial date of Petrobras, it has never been behind FPSO. FITCH Categories for FPSO bonds are higher than Petrobras (BB+ against BB), however they provide a higher return, indicating a better profile of risk. Mid -expensive FPSO replacement is also expensive due to factors, including enlarged costs and disabling the supply chain.
Yinson’s production is transmitted to public bond markets due to changes in the financing scene of long assets. The Basel Blossoms have made long -term bank loans that limit the conditions of only 5 to 8 years, and export credit agencies have stopped financing new oil and gas projects due to ESG fears. The diversification of financing through the capital markets (DCM) allows Yinson production to remove the risk of financing, increase financing efficiency and remove public risk.
“The contradiction of the financing and the project’s life will let the FPSO owners be exposed to the risk of large re -financing, which leads to the lack of an unequal profile of debt with peaks like the project links,” Wenker explains.
This approach also liberates the bank’s exposure to new projects, as banks remain vital for construction financing, while DCM is more suitable for long -term financing during the lease and operation contract. Yinson’s production also cooperates with infrastructure boxes to improve the capital structure.
