KUALA LUMPUR: Yinson Holdings Bhd's Singapore unit Yinson Production Offshore Pte Ltd has sealed a five-year corporate facility loan of up to US$500 million (RM2.34 billion).
The loan is the first of its kind raised by Yinson Production and underpins the banks' confidence in it as a leading independent owner and operator of floating production storage and offloading (FPSO) worldwide, the company said today.
It also reflects the banks' confidence in the robust fundamentals and attractiveness of the FPSO industry in the global energy infrastructure space, Yinson Production added.
The Singapore branch of Natixis will serve as the coordinator, as well as the mandated lead arranger and bookrunner of the facility loan, together with Affin Bank Bhd, AmInvestment Bank Bhd, CIMB Islamic Bank Bhd, ING Bank NV's Singapore branch and United Overseas Bank Ltd.
Yinson Production said a general syndication process is anticipated to commence in January 2024, by which the facility loan is earmarked for refinancing certain existing debt, as well as for general corporate purposes.
Beside this, Yinson Production said a portion of the facility loan will also be allocated for the company's green initiatives toward innovating and introducing cutting-edge technologies in reducing emissions and being the frontrunner in decarbonising the FPSO industry.
Yinson Production chief financial officer Markus Wenker said the company is pleased to have successfully completed the transaction with strong support from the banks.
"This is the first corporate loan raised by Yinson Production following the reorganisation and decentralisation of Yinson Group earlier this year, and showcases our ability to attract financing along the entire capital structure, utilising Yinson Production's balance sheet," he added.