Yinson Production has successfully priced USD 1.458 billion in 144A/RegS senior secured notes through its subsidiary Yinson Azalea Production Pte. Ltd., in what the company describes as the largest FPSO project bond to date.

The issuer owns the Agogo FPSO, described by the company as one of the industry's most advanced floating production, storage, and offloading vessels. The vessel is leased to Azule Energy Angola S.p.A. and operates in block 15/06 offshore Angola under a 15-year firm bareboat charter, with extension options for up to five years.

Terms of Offering

The notes are fully amortizing with a scheduled maturity of 13.3 years. They were priced at 98.164% of their principal amount and carry a fixed coupon of 6.517% per annum, payable semi-annually.

The proceeds will be used to, amongst other things, refinance the existing outstanding debt related to the Agogo FPSO, fund reserve accounts as required under the new bond issue unless funded by a reserve account facility, pay for transaction-related fees and expenses, and for equity distributions from excess proceeds.

The notes are expected to settle on 21 October 2026. An application has been made for the notes to be admitted to trading on the London Stock Exchange's International Securities Market.

Investment-Grade Credit Ratings

Fitch and Moody's have assigned expected credit ratings of BBB+ and Baa2, respectively, to the notes. According to the announcement, the ratings reflect the strong credit fundamentals of the Agogo FPSO, its strategic importance to the charterer, and the critical role of FPSOs in the offshore oil and gas value chain more broadly.

Transaction Parties

Citigroup Global Markets Singapore Pte. Ltd., The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch, J.P. Morgan Securities Asia Private Limited, and Banco Santander, S.A., Singapore Branch, acted as Global Coordinators and Joint Bookrunners for the offering.

First Abu Dhabi Bank PJSC, MUFG Securities Asia Limited, Singapore Branch, and Samuel A. Ramirez & Co., Inc. acted as Co-Managers. Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors to the issuer, while Gibson, Dunn & Crutcher LLP and Clifford Chance LLP acted as legal advisors to the initial purchasers.

A Milestone for the FPSO Asset Class

Markus Wenker, Yinson Production's Chief Financial Officer, said the company was very pleased with the strong support from institutional investors for the offering, which he noted is the company's third FPSO project bond in three years and sets a new benchmark as the largest FPSO project bond to date.

Wenker also characterized the transaction as an important milestone for the asset class as a whole, noting that it is the first FPSO project bond outside Brazil. According to Wenker, this broadens and diversifies the investable universe for investors seeking exposure to infrastructure assets backed by highly visible cash flows and strong counterparties.

He added that the transaction demonstrates the availability of long-term capital to the FPSO industry, reinforces the merits of the lease-and-operate model, and further strengthens Yinson Production's capital structure.

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