Modec raises $1.1bn to refinance Brazilian FPSO

Modec raises $1.1bn to refinance Brazilian FPSO

Japan’s Modec says that an affiliate of the company has issued a project bond in the international capital markets to refinance FPSO Cidade de Mangaratiba MV24, currently chartered to the TUPI consortium led by Petrobras.

The bond has raised $1.1bn, and is part of Modec’s strategy to diversify its financing sources for the company’s entire FPSO charter business.

FPSO Cidade de Mangaratiba MV24 is currently in operation at the Iracema Sul oil field, operated by Petrobras, in the giant pre-salt region offshore Brazil. It commenced a 20-year charter in 2014.

The shareholders that owns the FPSO are MODEC, Mitsui & Co., Mitsui O.S.K. Lines, and Marubeni Corporation.

MODEC has 11 FPSO charter projects in operation around the world and four more under construction.

“With diverse means of financing, which can be applied to both existing and new charter projects, MODEC is able to respond more flexibly to the recent burgeoning demand for FPSOs and thus establish a robust position in the FPSO industry,” the company stated.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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