Singapore-based floater owner and operator Yinson Production has successfully structured and arranged a standby letter of credit and guarantee facility of $100m.
The company added that the three-year facility, with options for extensions, expands Yinson Production’s “strategic financing toolkit to support the continuous growth” of the company.
According to the Singapore firm, the agreement for the facility demonstrates the continued confidence of banking partners in the company’s strategy and credit quality.
“This is Yinson Production’s first standby letter of credit and guarantee facility that enhances the efficiency of our capital structure by unlocking otherwise unproductive liquidity. It also provides added flexibility to support new projects, as we continue to see healthy demand for new FPSOs,” said Markus Wenker, CFO at Yinson Production.
This is the second financial move made by the company this year, after the floater owner secured a $1bn investment from a consortium of international investment companies in January. It also provided the option to issue additional redeemable convertible preferred shares of up to $500m within 24 months from closing.
