Despite the challenging Covid-19 situation and decline in oil prices, Export-Import Bank of Malaysia Berhad (EXIM Bank) continues to be the preferred trade financier and advisor of global businesses, as it finds ways to lend its support to Malaysian businesses by financing their cross-border projects.
To this effect, EXIM Bank together with other local and foreign financial institutions have joined hands and offered a US$400 million bridge financing to Yinson Holdings Berhad (Yinson), together with its project partner, Sumitomo Corporation (Sumitomo) for its FPSO Anna Nery Project – a floating, production, storage and offloading (FPSO) vessel for the Marlim Revitalisation Project in Brazil.
The bridge loan is expected to be utilised from October 2020 to support the ongoing construction of FPSO Anna Nery, whilst Yinson and Sumitomo continue to work on closing the long-term project financing package for the project. Sumitomo has a 25 percent stake in the FPSO Anna Nery Project, which was awarded to Yinson by Petróleo Brasileiro S.A. (Petrobras) in October 2019.
Yinson Group Chief Strategy Officer, Daniel Bong said that the deal was oversubscribed by the participating banks, which is a strong testament of their support of Yinson despite challenging economic conditions.
“The support that we have received for this deal is indeed a strong evidence of the confidence that the financial community has in Yinson notwithstanding the various hurdles exacerbated by the Covid-19 pandemic. We are immensely grateful to our partner, Sumitomo, the participating banks and our client, Petrobras for the unwavering support shown for this transaction. Through our close working relationship and collaboration, we have successfully achieved the objectives of all parties.”
Bong added that it is the strong teamwork between Yinson’s project and corporate teams that enabled Yinson to maintain its excellent track record of delivering projects on time and on budget, which was instrumental in building up investors’ and lenders’ confidence.
EXIM Bank’s Chief of Staff, Chin Chon Young, said: “At the height of the oil crisis, EXIM Bank’s participation in this financing exercise was able to boost the confidence of the rest of the lenders and stakeholders, which led to the successful offering of this bridge financing for the Yinson-Sumitomo’s FPSO Anna Nery Project in Brazil.
“This is truly in line with the Bank’s mandate as Malaysia’s development financial institution tasked to develop cross-border ventures of businesses through the provisioning of the credit and insurance facilities to finance the export and imports of goods and services, and overseas projects with emphasis on non-traditional markets.”
Besides EXIM Bank, the bridge loan was also supported by Maybank Investment Bank Berhad and Maybank International Labuan Branch; Mizuho Bank Ltd, Labuan Branch; Natixis, Singapore Branch; Standard Chartered Bank (Singapore) Limited; Sumitomo Mitsui Banking Corporation, Singapore Branch; and The Hongkong and Shanghai Banking Corporation Limited.
Last year, Yinson’s first Malaysian-flagged vessel, FPSO Helang, went through a smooth 19-month conversion process, achieving first gas in December 2019. The work on FPSO Anna Nery is progressing well, with procurement, engineering and construction works tracking as planned. The vessel entered into the next phase of construction on 23 September 2020, marked by the sailing away from the Cosco Qidong shipyard to the Cosco Changxing shipyard in Shanghai.
Deemed one of the world’s leading energy solution providers, listed on the Main Market of Bursa Malaysia Securities Berhad, Yinson was established in 1983 as a transport agency in Johor Bahru, which eventually grew to become one of Malaysia’s biggest transport companies.
In 2011, the Group began its venture into the oil and gas industry by winning its first Floating, Storage and Offloading (“FSO”) contract through its joint venture company with PetroVietnam Technical Services Corporation.
In 2014, Yinson strengthened its core business through the acquisition of Fred. Olsen Production ASA. With the acquisition, Yinson inherited a strong and experienced team, as well as a further three FPSOs and one mobile offshore production unit management contract.
In 2016, the Group streamlined the business and transformed into a full-fledged FPSO operator through the divestment of its non-oil & gas business segments. Growing from strength to strength, Yinson is currently the 6th largest independent FPSO leasing company in the global FPSO market, with a wide geographical presence in 11 countries.
Gearing for growth, Yinson recently diversified into renewables as well.