Yinson-Sumitomo Secures USD400M Bridge Financing for FPSO Anna Nery
Yinson Holdings Berhad together with its project partner, Sumitomo Corporation, have entered into a USD400 million bridge loan financing agreement for the FPSO Anna Nery Project, a floating, production, storage and offloading (FPSO) vessel for the Marlim revitalization project in Brazil.
The bridge loan is expected to be utilised from October 2020 to support the ongoing construction of FPSO Anna Nery whilst Yinson and Sumitomo continues to work on closing the long-term project financing package for the project.
Sumitomo has a 25% stake in the FPSO Anna Nery Project, which was awarded to Yinson by Petróleo Brasileiro S.A. (Petrobras) in October 2019.
The bridge loan is supported by the following banks:
- EXPORT-IMPORT BANK OF MALAYSIA BERHAD
- MAYBANK INVESTMENT BANK BERHAD & MAYBANK INTERNATIONAL
- LABUAN BRANCH
- MIZUHO BANK LTD, LABUAN BRANCH
- NATIXIS, SINGAPORE BRANCH
- STANDARD CHARTERED BANK (SINGAPORE) LIMITED
- SUMITOMO MITSUI BANKING CORPORATION, SINGAPORE BRANCH
- THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
Yinson Group Chief Strategy Officer, Daniel Bong said that the deal was oversubscribed by the participating banks, which is a strong testament of their support of Yinson despite the challenging Covid-19 situation and the decline in oil price.
“The support that we have received for this deal is indeed a strong evidence of the confidence that the financial community has in Yinson notwithstanding the various hurdles exacerbated by the Covid-19 pandemic. We are immensely grateful to our partner, Sumitomo, the participating banks and our client, Petrobras for the unwavering support shown for this transaction. Through our close working relationship and collaboration, we have successfully achieved the objectives of all parties.”
Daniel added that it is the strong teamwork between Yinson’s project and corporate teams that enabled Yinson to maintain their excellent track record of delivering projects on time and on budget, which was instrumental in building up investors’ and lenders’ confidence.
Last year, Yinson’s first Malaysian-flagged vessel, FPSO Helang, went through a smooth 19-month conversion process, achieving first gas in December 2019. The work on FPSO Anna Nery is progressing well, with procurement, engineering and construction works tracking as planned. With demolition works now completed and module fabrication works now underway, first dry dock is on track to take place at the end of September 2020.