Borrowings

The movement in bank interest bearing borrowings is as follows:

The additions in borrowings of US$1,642 million relate mainly to drawdowns on (i) project finance facilities for FPSO Liza Unity, FPSO Prosperity, and FPSO Sepetiba and (ii) the new loan achieved for FPSO ONE GUYANA.

For further disclosures about the fair value measurement we refer to note 4.3.27 Financial Instruments − Fair Values and Risk Management.

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 borrowings, excluding the amount of transaction and amortized costs, have the following forecast repayment schedule:

The borrowings by entity are as follows:

Loans and borrowings per entity

• ¹ % interest per annum on the remaining loan balance.

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

The Company has available facilities resulting from (i) the undrawn RCF, (ii) the undrawn portion of FPSO Sepetiba, FPSO Prosperity and FPSO ONE GUYANA project facilities and (iii) short-term credit lines.

Expiry date of the undrawn facilities and unused credit lines

The RCF in place as of December 31, 2022 has a maturity date of February 13, 2026. The US$1 billion facility was secured with a selected group of 11 core relationship banks, increasing to 13 banks as per 2022 and has an uncommitted option to increase the RCF by an additional US$500 million. 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. On December 23, 2021 the RCF was amended by means of an amendment and restatement agreement to reflect a dedicated green funding tranche. By creating this green tranche, US$50 million of the RCF may only be used to fund activities that comply with the Green Loan Principles (primarily activities related to renewable energy projects) and the remaining US$950 million can be used 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 currently based on LIBOR, and it includes provisions for the replacement of LIBOR with a compounded reference rate. The margin is adjusted in accordance with the applicable leverage ratio ranging from a minimum level of 0.50% p.a. (0.40% for the green tranche) to a maximum of 1.50% p.a. (1.40% for the green tranche). 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 Sustainability performance in 2022 allows the 0.05% margin decrease to remain applicable for 2023.