Yinson Production Issues $1.168 Billion Bond for FPSO Unit in Brazil

Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson, has recently made headlines with the issuance of a $1.168 billion bond for a floating, production, storage, and offloading (FPSO) unit operating in the pre-salt Campos Basin offshore Brazil.

The bond will primarily be used to refinance the FPSO Maria Quitéria, currently working with Petrobras in the Jubarte field under a 22.5-year lease and operate contract, with production activities commencing in October 2024.

The senior secured notes, issued by Yinson Bergenia Production, the owner of the FPSO vessel, are set to settle on July 7, 2025. Markus Wenker, Yinson Production’s Chief Financial Officer, expressed his enthusiasm for the successful placement of the project bond, highlighting its significance as the largest and longest-dated FPSO project bond ever issued.

Aside from refinancing existing debt, the bond proceeds will be allocated towards reserve accounts, covering transaction fees, and providing distributions to Yinson Production as the shareholder of the issuer.

The FPSO Maria Quitéria, standing at 156 meters tall and 333 meters long, operates at a water depth of 1,385 meters. With a capacity to produce 100,000 barrels of oil per day and process up to 5 million cubic meters of gas, the FPSO is interconnected to multiple producing and injecting wells, showcasing its operational efficiency.

Notably, the unit can generate 100 MW of energy, sufficient to power a city of 230,000 inhabitants, according to Petrobras. The FPSO is located in the Jubarte field, part of the Parque das Baleias integrated project, which includes Baleia Anã, Cachalote, Caxaréu, Pirambú, and Mangangá fields.