defensebriefing.com
yinson production offshore leaps into global scene with pioneering 500m bond 384

Finance

Yinson Production Offshore Leaps into Global Scene with Pioneering $500M Bond

reading

Michael Chen

April 19, 2024 - 08:45 am

reading

Yinson Production Offshore Makes Debut in International Capital Markets with Substantial USD 500 Million Bond Issue

SINGAPORE, April 19, 2024 – The financial world witnessed a new bold move as Yinson Production Offshore Pte. Ltd., commonly referred to as Yinson Production, recently announced the triumphant issuance of a senior secured bond valued at an impressive USD 500 million. The investment community has shown a hefty interest in this fresh financial tool that comes with a fixed tenure of five years and bears a fixed coupon rate of 9.625% per annum, specifically within the Nordic bond market.

This financial maneuver represents the very first venture of Yinson Production into the bustling arena of international capital markets. The net proceeds that flow from this bond issue are strategically earmarked for the refinancing of Yinson Production's existing corporate loans, as well as for addressing the company's general corporate necessities. In the foreseeable future, an official application will be submitted with the intent to list this bond on the esteemed Oslo Børs.

Distinguished Bookrunners and Joint Lead Manager

DNB Markets and Pareto Securities have taken the lead in contributing their expertise as Joint Bookrunners, while ABG Sundal Collier has held the distinguished role of Joint Lead Manager throughout the bond issue process. This collaboration has been pivotal in the successful placement and reception of the bond issue within the investor community.

A Statement from Yinson Production’s CFO

Markus Wenker, who holds the Chief Financial Officer position at Yinson Production, expressed his thoughts on the successful placement of the bond issue. "With this inaugural bond issue in the Nordic bond market, we have successfully expanded our financing toolkit and further broadened Yinson Production's funding base in an ever-changing financial markets landscape," said Wenker. He enunciated the substantial oversubscription as a testament to the compelling investment proposition supported by Yinson Production's stalwart long-term contracts and the clarity of its cash flows. Moreover, he noted the favorable market environment for Floating Production, Storage, and Offloading (FPSO) as a foundational element of the investment interest.

The Dynamic World of Yinson Production

"Passionately delivering powerful solutions," Yinson Production boasts a leading position as an independent owner and operator of FPSO vessels worldwide. The company’s portfolio includes a remarkable nine ships, alongside a commanding order book which stretches beyond an exceptional USD 22 billion extending all the way to 2048. Yinson maintains a prominent international presence, operating across a network of ten countries worldwide.

Proven Excellence and Innovative Leadership

Yinson Production’s reputation as a top-tier FPSO contractor is meticulously crafted on the back of its sterling track record in the areas of project execution, industry-leading safety standards, and paramount uptime performance. The company takes great pride in its sustainable FPSO designs and holds a leadership position in this innovative front. Additionally, Yinson is currently spearheading the FPSO industry into a new era with its groundbreaking Zero Emissions FPSO Concept, thus championing the path towards industry-wide decarbonization.

A Conglomerate with Diverse Business Verticals

Yinson Production functions under the umbrella of Yinson Holdings Berhad—a multifaceted global energy infrastructure and technology conglomerate. The corporation also encompasses Yinson Renewables, which focuses on renewable energy, Yinson GreenTech advocating green technologies, Farosson spearheading sustainable investment and asset management, and Regulus Offshore, which operates within the offshore marine sector.

Continuously Connecting and Expanding

For potential investors, stakeholders, and the public at large who are keen to learn more about the operations, vision, and services of Yinson Production, the company has established an online portal. This resource is designed to offer in-depth insights into the offshore production sector and the strategic moves of Yinson Production. Interested individuals are encouraged to visit Yinson’s Offshore Production website for a comprehensive understanding of the company's expansive contributions to the global energy landscape.

Unveiling the Successful Bond Placement Strategy

The transition into the international capital market has been a calculated move on the part of Yinson Production, with the objective of securing a robust financial foundation amid a diversified audience of global investors. The significant interest garnered from the investor community not only underlines confidence in Yinson Production’s financial health but also underscores the potential that the FPSO market holds. This strategic alignment has allowed Yinson to propel its vision forward effectively, bringing onboard stakeholders who understand the intricacies and the promise within the energy sector.

Expert Financial Synergy

The collaboration between Yinson Production and its financial partners demonstrates a powerful synergy that harnesses the strengths of seasoned market experts. The involvement of superior entities like DNB Markets, Pareto Securities, and ABG Sundal Collier has imbued the bond issue process with substantial credibility and confidence that resonates well within the capital markets realm. This level of financial orchestration is indicative of Yinson Production's commitment to upholding strong financial principles and leveraging opportunities for expansion and sustainability.

Commentary from the Financial Helm

ZThe insights from Markus Wenker, Yinson Production’s CFO, highlight the strategic intent behind the successful placement of the bond issue. Wenker draws attention to the importance of diversifying financing mechanisms in response to the dynamic changes within financial markets. The enthusiastic response from the investors towards the bond issue vividly illustrates the trust and belief in Yinson Production’s robust business model, underscored by transparent, predictable revenue streams and secured by lengthy contractual commitments.

Wenker's analysis points out that the attraction from investors stems not only from the strength of business fundamentals but also from the overall buoyancy of the FPSO sector. This reflects a collective anticipation of growth and expansion in areas where Yinson is well-positioned to deliver significant value. Wenker’s comments provide a glimpse into the strategic financial foresight that Yinson Production abides by, ensuring that the company is firmly anchored for long-term success.

A Fleet of Innovation and Global Influence

With a fleet that is as vast as it is versatile, Yinson Production stands at the forefront of the FPSO domain, commanding an impressive array of nine state-of-the-art vessels. The substantial order book, which extends deep into the future, is a testament to the company's capacity to secure and deliver on significant contracts across the globe. This far-reaching presence is not merely a reflection of Yinson's geographic footprint but also symbolizes its pervasive influence in setting industry standards and steering market trends.

The ongoing pursuit for pioneering FPSO solutions is driven by an unquenchable passion for innovation. Through its commitment to sustainability, Yinson Production is setting new benchmarks with its Zero Emissions FPSO Concept. This innovative endeavor not only illustrates Yinson's proactive stance towards environmental considerations but also showcases its leadership in implementing green solutions within the rigorous demands of oil and gas production.

A Diverse Portfolio Under One Roof

Yinson Holdings Berhad, the parent company of Yinson Production, is a beacon of diversified energy solutions. The conglomerate's varied portfolio envelops a broad spectrum of the energy sector. With its arms extending into renewable energy through Yinson Renewables, embracing innovation with Yinson GreenTech, forging sustainable investments via Farosson, and marking its presence in the marine expanse through Regulus Offshore, the group encapsulates a forward-looking approach to the ever-evolving energy landscape.

This diversified strategy facilitates the exploitation of synergies across different but related sectors, enabling Yinson Holdings Berhad to not only weather financial and market volatilities but also secure a pathway to growth. The holistic nature of the group's business approach is grounded in embracing future-ready technologies and investing in environmentally conscious initiatives that align with global sustainability goals.

Engaging the Global Community

The commitment to transparency and engagement with the global community is evident in Yinson Production's interactive online presence. The off-shore production website serves as a hub for information dissemination, where interested parties can delve into the intricate workings of the company, understand its market positioning, grasp future orientations, and appreciate the technological innovations being pursued. This digital doorway is not only an educational tool but also reflects Yinson's commitment to maintaining an open channel of communication with its stakeholders.

By providing this platform, Yinson entices a broader spectrum of onlookers—from potential investors to industry analysts—to engage with the company and explore the expansive opportunities Yinson Production is poised to capitalize on. This active approach to digital connectivity ensures that information about Yinson's triumphs, challenges, and strategic direction is readily available and accessible to those who seek it.

Conclusion

Yinson Production's successful USD 500 million bond issue is a landmark event that not only diversifies its funding sources but places the company squarely on the global financial map. With the backing of veteran financial institutions and a well-received investor response, the company secures its position as a formidable player in the FPSO industry. Through its diverse operational arms, Yinson Holdings Berhad upholds a commitment to groundbreaking solutions, sustainable practices, and market-leading innovations across the energy sector, solidifying its stature as a global energy luminary.