Yinson Holdings, a Malaysian energy infrastructure company, has secured a significant USD 1 billion funding round for its subsidiary, Yinson Production, which specializes in equipment for the offshore oil and gas industry. The investment comes from a consortium of global investors, including the Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corporation (BCI), and RRJ Group. This pre-IPO funding round involves the issuance of redeemable convertible preferred shares and 10% warrants, valuing Yinson Production at USD 3.7 billion post-money.
The funding, expected to close in the first quarter of 2025, will primarily support Yinson Production’s expansion in the floating production, storage and offloading (FPSO) vessel market. Of the total amount, USD 200 million will be distributed to Yinson Holdings, the parent company. The agreement also includes an option for the investors to inject an additional USD 500 million within 24 months, potentially increasing the total investment to USD 1.5 billion.
Yinson Production has established itself as a key player in the FPSO market, with existing contracts with major oil and gas companies such as Brazil’s Petrobras and the Angolan joint venture of BP and Eni SpA. The substantial investment is seen as a strategic move to capitalize on the robust FPSO market environment and strengthen Yinson Production’s leading market position. This funding round is considered one of the largest structured equity transactions in Southeast Asia and marks Yinson Production’s first platform-level equity raise.
(Source: Market Screener)
