Brazilian FPSO Set for Financing

The Cernambi Sul MV24 production, storage and offload (FPSO) project is expected to close a 19-year $1.1bn term loan this week. The financing is divided into a $450m tranche with Mitsubishi UFJ and Sumitomo Mitsui as MLAs and Mizuho and Sumitomo trust as arrangers. The Japan Bank for International Cooperation (JBIC) was MLA and guarantor on a second $675m tranche, which also counted Mistubishi UFJ as an arranger. Both parts have identical maturities, and pricing is expected at Libor plus a spread in the mid to upper 200bp range, according to a person familiar with the deal, who declines to elaborate further. Cernambi Sul MV24 is an FPSO built by Japan’s Mobec and co-sponsored by Mitsui & Co and Marubeni, for use in Brazil’s Cernambi Sul pre-salt fields.