- Yinson Production has entered into a definitive agreement with a consortium of global investment firms to raise pre-IPO growth capital of USD 1 billion of redeemable convertible preferred shares and 10% warrants, with the option to upsize to USD 1.5 billion within 24 months
- The proceeds are intended to be used to support Yinson Production’s further growth and for a distribution of USD 200 million to the controlling shareholder
- The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions
SINGAPORE/LONDON, 14 January 2025 – Yinson Production, through the newly established, UK-based holding company Yinson Production Offshore Holdings Limited (the “Issuer”), has entered into a definitive agreement with a consortium comprising Platinum Lily B 2024 RSC Limited (“Platinum”), 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”; together with ADIA and BCI, the “Investors”, and, individually, an “Investor”) to issue USD 1 billion in redeemable convertible preferred shares (the “RCPS”) and 10% warrants at a post money valuation of USD 3.7 billion. The agreement provides the option to issue additional RCPS of up to USD 500 million within 24 months from closing,
subject to agreement.
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.
