Yinson Production turns the financial flexibility key to unlock liquidity doors

Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson, has made its first foray into a corporate-level standby letter of credit and guarantee facility to boost its liquidity.

While confirming that it has structured and arranged a stand-by letter of credit and guarantee facility of $100 million with multiple banks, the Malaysian giant explains that its three-year facility, with options for extensions, further expands its strategic financing toolkit.

As a result, this move is expected to support the firm’s continuous growth by increasing its financial flexibility and streamlining cash management. According to the company, the facility demonstrates the continued confidence of its banking partners in its strategy and credit quality.

Yinson Production sees this financial achievement as a testament to its strong position among the leading independent floating production, storage, and offloading (FPSO) owners and operators worldwide.

Commenting on the latest financial milestone, Markus Wenker, CFO of Yinson Production, highlighted: “This is Yinson Production’s first corporate-level standby letter of credit and guarantee facility – a structure tailored to our needs that further enhances capital efficiency by unlocking liquidity otherwise tied up in reserve accounts.

“It also provides added flexibility to support new projects, aligning with our growth ambitions amid strong market demand for new FPSOs.”

This comes only months after Yinson Production disclosed the equity raise of $1 billion with the option to up the amount to $1.5 billion by issuing additional redeemable convertible preferred shares (RCPS) of up to $500 million within 24 months of closing, subject to agreement.

This followed the firm’s $100 million tap issue in 2024 to bring the total amount of the corporate bond to $600 million to bankroll the upgrade of its FPSO units.