The production of Yinson whose headquarters are in Singapore recently issued a record obligation of $ 1.168 billion for a floating production, storage and unloading unit (FPSO) in Brazil.
This marks the connection of the most important and longest FPSO project to date, the longest structured financial link in Brazil and the highest order book for an obligation of the FPSO project.
The production of Yinson used a project obligation to guarantee long -term funding for a key asset (FPSO Maria quiteria) complete with the offshore operations of Petrobras in Brazil. This financial strategy optimizes the structure of the capital of the production of Yinson and attracts a wide range of institutional investors.
According to the Yinson production financial director Markus Wenker, the obligations of the FPSO project gain popularity with investors because of their long-term fixed rate contracts (generally 15-25 years), which offer visibility and resilience of high cash flows. These assets are crucial for oil companies, offering strong protection against the drawbacks against the defect. Despite Petrobras’ financial history, he never lacks on an FPSO. Fitch notes for FPSO obligations are higher than for Petrobras (BB + VS BB), but they offer a higher yield, indicating a better risk reward profile. The replacement of a half-production production cycle of the FPSO is also prohibitive due to factors, in particular the inflation of costs and disturbances of the supply chain.
The production of Yinson moves to the public bond markets due to changes in the long -standing asset financing landscape. Basel regulations have billed long -term bank loans, limiting conditions to only 5 to 8 years, and export credit agencies have ceased to finance new oil and gas projects due to ESG concerns. The diversification of financing through the debt capital markets (DCM) allows Yinson production to eliminate refinancing, increase the efficiency of funding and exceed its balance sheet.
Wenker explains: “The incongruity of financing deadlines and project lives would leave the owners of FPSO exposed to significant refinancing risks, resulting in an unequal consolidated debt damping profile with peaks. The debt capital markets, in contrast, offer pockets of money with an appetite for very long obligations such as project obligations. ”
This approach also releases the exhibition of banks for new projects, because banks remain vital for construction financing, while the DCM is more suitable for long -term financing during the rental and operating phase. Yinson’s production also collaborates with infrastructure funds to optimize its capital structure.