With $1 billion investment in hand, Yinson Production all set for further growth

Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson, has ticked all the items off the list to bolster its financial position and drive growth by finishing the work related to a $1 billion investment secured with a consortium of international investment firms.

After revealing a definitive agreement regarding an 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, Yinson Production has now obtained regulatory approvals and closed this investment with a consortium comprising a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and funds managed by British Columbia Investment Management Corporation (BCI), and RRJ Group (RRJ).

The firm underlined that the investment was made through the issuance of $1 billion of redeemable convertible preferred shares and warrants by Yinson Production Offshore Holdings, a newly established UK-based holding company. This agreement still provides for the option to issue additional RCPS of up to $500 million within 24 months of closing.

The investors funded the first tranche of $300 million, of which $200 million has been used for a special distribution to Yinson. The remaining $700 million of committed RCPS will be called in up to three installments by December 2026. With a current fleet of ten floating units, Yinson Production has an order book of over $19 billion until 2048 and presence in 11 countries.

Markus Wenker, Yinson Production’s Chief Financial Officer, commented: “This investment not only reflects the quality of our business with highly visible cash flows and significant revenue backlog, but underscores the confidence in Yinson Production’s long-term growth potential.

“By further strengthening our financial foundation, this transaction positions us well to pursue new opportunities in a rapidly evolving offshore energy landscape.”

As it is dedicated to pursuing sustainable floating production, storage, and offloading (FPSO) designs, the firm claims that its Zero Emissions FPSO concept is paving the way for the decarbonization of the FPSO industry.

Recently, one of the company’s FPSOs arrived in Angola, where it will work at Block 15/06 for Azule Energy, unlocking the potential of the Agogo and Ndungu fields.