Yinson Production has priced $1.458 billion of senior secured notes to refinance debt linked to its Agogo floating production, storage and offloading (FPSO) unit operating offshore Angola, in what the company said was the largest FPSO project bond to date.
The notes were issued by Yinson Azalea Production, which owns the Agogo FPSO, and have a scheduled maturity of 13.3 years.
Priced at 98.164% of their principal amount, the notes carry a fixed annual coupon of 6.517%, payable semi-annually. Settlement is expected on October 21, 2026.
Proceeds will primarily be used to refinance existing debt related to the FPSO, as well as fund required reserve accounts, cover transaction costs and make equity distributions from excess proceeds.
The Agogo is leased to Azule Energy Angola and operates at Block 15/06 offshore Angola under a 15-year firm bareboat charter, with extension options of up to five years.
“We are very pleased with the strong support from institutional investors for this offering, which is our third FPSO project bond in three years and sets a new benchmark as the largest FPSO project bond to date. It also represents an important milestone for the asset class as a whole, as this is the first FPSO project bond outside Brazil, broadening and diversifying the investable universe for investors seeking exposure to infrastructure assets backed by highly visible cash flows and strong counterparties,” said Markus Wenker, Yinson Production Chief Financial Officer.
With a production capacity of 120,000 barrels of oil per day, Agogo FPSO features cutting-edge carbon-reduction technology, including the industry’s first pilot post-combustion carbon capture system on an FPSO.
Brought onstream in 2025, the FPSO features closed flare system, hydrocarbon blanketing, combined cycle technology, automated process controls, and all-electric drives.
The deployment reflects wider industry efforts to integrate lower-emissions technologies into offshore assets, as operators seek to balance production with environmental targets. The carbon-reducing technologies onboard the FPSO are expected to reduce carbon emissions by up to 27%, according to Yinson Production.
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