Borrowings

The movement in bank interest bearing borrowings is as follows:

2020

2019

Non-current portion

4,168

3,856

Add: current portion

580

492

Remaining principal at 1 January

4,749

4,348

Additions

1,379

1,399

Redemptions

(589)

(1,011)

Transaction and amortized costs

12

13

Total movements

802

401

Remaining principal at 31 December

5,551

4,749

Less: Current portion

(1,216)

(580)

Non-current portion

4,335

4,168

Transaction and amortized costs

69

81

Remaining principal at 31 December (excluding transaction and amortized costs)

5,621

4,830

Less: Current portion

(1,230)

(596)

Non-current portion

4,390

4,234

The Company has no ’off-balance sheet’ financing through special purpose entities. All long-term debt is included in the consolidated statement of financial position.

The increase in the total borrowings of US$1,379 million relates mainly to drawdowns on project finance facilities for Liza Destiny (FPSO), Liza Unity (FPSO), and the bridge loan facility for FPSO Sepetiba. The latter has been extended to July 12, 2021.

Further disclosures about the fair value measurement are included in note 4.3.29 Financial Instruments − Fair Values and Risk Management.

The borrowings, excluding transaction costs and amortized costs amounting to US$69 million (2019: US$81 million), have the following forecast repayment schedule:

31 December 2020

31 December 2019

Within one year

1,230

596

Between 1 and 2 years

1,432

941

Between 2 and 5 years

1,454

1,599

More than 5 years

1,504

1,695

Balance at 31 December

5,621

4,830

The increase of the ’Total Current portion of Borrowings and lease liabilities’ balance is mainly explained by the Sepetiba Bridge loan facility for US$600 million.

The borrowings by entity are as follows:

Loans and borrowings per entity

Net book value at 31 December 2020

Net book value at 31 December 2019

Entity name

Project name or nature of loan

% Ownership

% Interest 1

Maturity

Non-current

Current

Total

Non-current

Current

Total

US$ Project Finance facilities drawn:

SBM Deep Panuke SA

MOPU Deep Panuke

100.00

3.50%

15-Dec-21

-

70

70

70

67

137

Tupi Nordeste Sarl

FPSO Cidade de Paraty

63.13

5.30%

15-Jun-23

195

116

311

311

110

421

Guara Norte Sarl

FPSO Cidade de Ilhabela

75.00

5.10%

15-Oct-24

427

128

555

555

122

677

SBM Baleia Azul Sarl

FPSO Cidade de Anchieta

100.00

5.50%

15-Sep-27

239

35

274

274

33

307

Alfa Lula Alto Sarl

FPSO Cidade de Marica

61.00

5.30%

15-Dec-29

908

108

1,016

1,016

103

1,119

Beta Lula Central Sarl

FPSO Cidade de Saquarema

61.00

4.10%

15-Jun-30

1,018

91

1,109

1,109

86

1,195

Guyana Deep Water UK Limited

FPSO Liza Destiny

100.00

Libor + 1.65%

31-Oct-29

606

62

668

504

60

565

US$ Guaranteed project finance facilities drawn:

Guyana Deep Water II UK Limited

FPSO Liza Unity2

100.00

3.70%

31-dec-21

840

-

840

331

-

331

Bridge loan facility

Mero 2 Owning B.V.

FPSO Sepetiba

64.50

Libor + 1.44%

12-Jul-21

-

600

600

-

-

-

Revolving credit facility:

SBM Holding Inc

Corporate Facility

100.00

Variable

16-Dec-21

(2)

(1)

(2)

(2)

(1)

(3)

Other:

OS Installer Limited

SBM Installer

100.00

3.80%

29-Nov-26

58

7

65

-

-

-

Brazilian Deepwater Production B.V.

FPSO Espirito Santo

51.00

Libor + 1.05%

31-Jan-29

45

-

45

Other

100.00

1

(0)

1

1

(0)

1

Net book value of loans and borrowings

4,335

1,216

5,551

4,168

580

4,749

  • 1 % interest per annum on the remaining loan balance.
  • 2 The Liza Unity Project finance facility maturity date is December 31, 2021 but can be extended in various ways, and up to the expiry date of the 2 years Charter Term provided that the vessel has been completed.

The Company acquired the remaining 75% equity ownership in OS Installer Limited on September 30, 2020. As a result, OS Installer Limited has been fully consolidated as from the acquisition date including the US$67 million loan borne by this subsidiary.

For the project finance facilities, the respective vessels are mortgaged to the banks or to note holders.

The Company has available borrowing facilities being the (i) undrawn revolving credit facility (RCF), (ii) the undrawn portions of Liza Unity (FPSO) project facilities and (iii) short-term credit lines.

Expiry date of the undrawn facilities and unused credit lines

2020

2019

Expiring within one year

249

249

Expiring beyond one year

1,298

1,964

Total

1,547

2,213

The drawdowns in 2020 under the Liza Destiny and Liza Unity project finance facility lead to the decrease of available undrawn facilities and unusued credit lines.

The RCF in place as of December 31, 2020 has a maturity date of February 13, 2025, following the exercise of a one-year extension option on February 5, 2020. The US$1 billion facility was secured with a selected group of 11 core relationship banks and has an uncommitted option to increase the RCF by an additional US$500 million. On February 1, 2021, the lenders in the Company’s US$1 billion Revolving Credit Facility (RCF) agreed to the Company’s request to exercise the second one-year extension. The final maturity date of the RCF is thereby extended from February 12, 2025 to February 13, 2026. The Company does not have any other extension option remaining.

When needed, the RCF allows the Company to finance EPC activities / working capital, bridge any long-term financing needs, and/or finance general corporate purposes, when needed, in the following proportions:

  • EPC activities / working capital – 100% of the facility;
  • General Corporate Purposes – up to 50% of the facility;
  • Refinancing project debt – 100% of the facility but limited to a period of 18 months

The pricing of the RCF is based on LIBOR and a margin adjusted in accordance with the applicable leverage ratio ranging from a minimum level of 0.50% p.a. to a maximum of 1.50% p.a. The margin also includes a Sustainability Adjustment Mechanism whereby the margin may increase or decrease by 0.05% based on the absolute change in the Company performance as measured and reported by Sustainalytics1. The Company’s performance in 2020 allows the margin to remain stable for 2021.