Kuala Lampur:Yinson Production, the offshore production unit of Yinson Holdings Bhd, has announced the pricing of $1.458 billion in bonds to refinance its Agogo floating production, storage, and offloading (FPSO) vessel situated off the coast of Angola.

According to BERNAMA News Agency, this bond offering marks the largest FPSO project bond to date and is notable for being the first of its kind outside Brazil. The bonds, issued as senior secured notes by Yinson Azalea Production Pte Ltd, are slated for settlement on October 21, 2026. These fully amortizing notes have a scheduled maturity of 13.3 years and were priced at 98.164% of their principal amount, featuring a fixed coupon rate of 6.517% per annum, payable semi-annually.

Yinson Production intends to use the proceeds from this transaction to refinance existing debt tied to the Agogo FPSO, establish reserve accounts as necessitated by the new bond issue, cover transaction-related costs, and allow for equity distributions from any excess proceeds.

Markus Wenker, Chief Financial Officer of Yinson Production, expressed satisfaction with the robust institutional investor support for this, the company's third FPSO project bond in as many years. Wenker highlighted that the bond sets a new benchmark as the largest FPSO project bond and represents a significant milestone for the asset class, providing a broader and more diverse investment option for those interested in infrastructure assets with reliable cash flows and strong counterparties.

The transaction underscores the availability of long-term capital within the FPSO industry, highlights the advantages of the lease-and-operate model, and further bolsters Yinson Production’s capital structure.