Standard Chartered Underwrites FPSO Maria Quitéria's Initial Transition Finance Facility
Standard Chartered PLC
Standard Chartered announced that it led the structuring, underwriting, and arranging of a USD720 million syndicated loan facility for Yinson Holdings Berhad (Yinson) for the floating production storage and offloading (FPSO) Maria Quitéria project, marking the Bank's first transition finance facility for an FPSO system.
Standard Chartered assisted Yinson with the financing structure and market approach to form an underwriting group to meet Yinson's target of obtaining the facility amount, which will be used to fund the ongoing construction of the FPSO Maria Quitéria. Petróleo Brasileiro S.A. awarded the Parque das Baleias Integrated Project to Yinson in November 2021.
The facility, which will help finance the conversion of the FPSO Maria Quitéria, incorporates technology such as those aimed at reducing flaring from the field. This meets the conditions for the Bank's transition finance framework, allowing for labelling.
Henrik Raber, Global Head of Credit Markets at Standard Chartered, said:
“This is a milestone in the Bank’s transition finance journey, which demonstrates our commitment to responding to the urgent need to transition to a low-carbon world while supporting the markets and sectors that are driving economic growth. We are delighted to have taken a lead role in contributing to the success of this deal, driven by both Standard Chartered and Yinson’s common ambition to accelerate the net zero transition.”
Marisa Drew, the Bank’s Chief Sustainability Officer, added:
“Standard Chartered is very pleased to have supported Yinson on their inaugural transition financing transaction. Shipping is responsible for nearly 3% of man-made CO2 emissions and therefore has a crucial role to play in decarbonising our economy. The bank has developed a Transition Finance Framework and has committed to mobilising USD300 billion of sustainable and transition financing globally.”
Yinson Group Chief Strategy Officer Daniel Bong commented:
“At the heart of our offshore production business is our joint aspiration with our clients towards tackling world climate issues. Standard Chartered has been a firm supporter of our climate efforts for many years, and we are grateful to once again receive their support in this deal, together with our other banking partners. The confidence that the financial industry has in us is crucial towards achieving our shared vision of accelerating the transition to a low carbon world.”
Source: Standard Chartered