Yinson Production Secures $1.3B for Angola FPSO

Energy infrastructure and technology company Yinson Production has successfully closed a $1.3 billion limited recourse term loan facility for the construction of the Agogo FPSO in Angola. The financing – provided by a consortium of 13 lenders – covers the pre- and post-delivery of the facility. Commercial banking corporation Standard Chartered Bank served as Global Coordinating Bank for the financing. 

Comprising three pari-passu secured tranches with staggered maturities of up to 10 years, the multi-tranche financing will cover the entire development of the FPSO. The FPSO will be deployed at the Agogo Integrated West Hub Development Project in the West Hub of Block 15/06, offshore Angola, and will have a production capacity of 120,000 barrels per day.

Yinson Production CFO Markus Wenker stated that the transaction is “not only [the company’s] single largest financing to date but the commercial multi-tranche structure – the first of its kind in the industry – significantly increases the efficiency of the financing compared to traditional structures, whilst diversifying the funding base by combining different lender groups in a single transaction.”

Yinson Production was awarded a contract for the provision, operation and maintenance of the Agogo FPSO in 2023, with the contract period covering 15 years with additional optional periods of up to five years.