Yinson Unit Closes US$1 Bln Investment Deal With Consortium

KUALA LUMPUR, June 17 (Bernama) -- Yinson Holdings Bhd’s (Yinson) subsidiary Yinson Production has closed the previously announced US$1 billion (US$1=RM4.23) investment deal with a consortium.

The consortium of investors comprises a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), funds managed by British Columbia Investment Management Corporation (BCI) and RRJ Group (RRJ).

In a statement today, Yinson said that the successful closing of the transaction follows the signing of a definitive agreement on Jan 14, 2025, and satisfaction of the closing conditions, including regulatory approvals and approval by the shareholders of Yinson.

“The investment is made through the issuance of US$1 billion of redeemable convertible preferred shares (RCPS) and warrants by Yinson Production Offshore Holdings Ltd, a newly established UK-based holding company.

“The agreement provides for the option to issue additional RCPS of up to US$500 million within 24 months from closing, subject to agreement,” it said.

Upon closing, the investors funded the first tranche of US$300 million, of which US$200 million has been used for a special distribution to Yinson.

“The remaining US$700 million of committed RCPS will be called in up to three instalments by December 2026,” it said.

Yinson Production chief financial officer Markus Wenker said the investment not only reflects the quality of its 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,” he added.

Yinson Production is an independent owner and operator of floating storage, production and offloading vessels.

-- BERNAMA