Malaysia-based Yinson Production, through the newly established, UK-based holding company Yinson Production Offshore Holdings Limited, has entered into a definitive agreement with a consortium comprising Platinum Lily B 2024 RSC Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority, and funds managed by British Columbia Investment Management Corporation, and RRJ Group to issue USD 1 billion in redeemable convertible preferred shares and 10% warrants at a post money valuation of USD 3.7 billion.
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The agreement provides the option to issue additional RCPS of up to USD 500 million within 24 months from closing, subject to agreement.
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The proceeds from the transaction will primarily support Yinson Production’s further growth, whilst USD 200 million will be used for distribution to the controlling shareholder, a wholly owned subsidiary of Yinson Holdings Berhad.
“We are delighted to welcome ADIA, BCI and RRJ as new investors in Yinson Production,” said Flemming Grønnegaard, Chief Executive Officer of Yinson Production. “This is one of the largest structured equity transactions in Southeast Asia and the first platform-level equity raise by Yinson Production. It builds upon Yinson Production’s proven track record of delivering value accretive growth through our integrated platform. The growth capital will further strengthen our leading market position and enables us to seize opportunities in a robust FPSO market environment.”
The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions, including regulatory approvals and approval of the shareholders of Yinson Holdings. UBS AG, Singapore Branch acted as financial advisor and A&O Shearman acted as legal advisor to Yinson Production in connection with this transaction.
About Yinson Production
Yinson Production is a leading independent owner and operator of floating storage, production and offloading (FPSO) vessels worldwide. With a fleet of 9 FPSOs, it has an orderbook of over USD 22 billion until 2048 and global presence in 10 countries.
Yinson Production’s position as a top tier FPSO contractor is driven by excellent track record in project execution, industry-leading safety and uptime performance, and a leadership position in sustainable FPSO designs.
