SBM Offshore announces the closing of a US $ 600 million bridge loan to finance the construction of the FPSO Sepetiba.

The installation was guaranteed by the special purpose company that owns the FPSO Sepetiba and was agreed with a consortium of four international banks. SBM Offshore is the majority owner of this special purpose company (with 64.5% shareholding), together with Mitsubishi Corporation (20%) and Nippon Yusen Kabushiki Kaisha (15.5%).

The installation in the Mero field in the Santos Basin is scheduled for 2022.

The Libra block, where the Mero field is located, is under a Production Sharing Contract with a consortium formed by Petrobras, as Operator, with 40%, Shell with 20%, Total with 20%, CNODC with 10% and CNOOC Limited with 10%. The consortium also has the participation of the state-owned company Pré-Sal Petróleo SA (PPSA) as manager of the Production Sharing Contract.

The term of the bridge loan is six months, with an option to extend it for another six months. The installation benefits from the contractor's guarantees, which must be released upon reimbursement. The facility's weighted average interest margin is in line with the expected margin of SBM Offshore's existing $ 1 billion revolving credit facility for the second half of 2020.