Singapore-based floater owner and operator Yinson Production has secured a $1bn investment from a consortium of international investment companies to drive further growth.
The company, through its newly established UK-based holding company Yinson Production Offshore Holdings Limited, has entered into a definitive agreement with a consortium comprising of the Abu Dhabi Investment Authority’s wholly-owned subsidiary Platinum Lily B 2024 RSC, funds managed by British Columbia Investment Management Corporation, and RRJ Group to issue $1bn in redeemable convertible preferred shares and 10% warrants at a post-money valuation of $3.7 billion.
The agreement provides the option to issue additional redeemable convertible preferred shares of up to $500m within 24 months from closing.
The proceeds from the transaction will primarily support Yinson Production’s further growth, whilst $200m will be used for distribution to the controlling shareholder, a wholly-owned subsidiary of Yinson Holdings.
“This is one of the largest structured equity transactions in Southeast Asia and the first platform-level equity raise by Yinson Production. The growth capital will further strengthen our leading market position and enable us to seize opportunities in a robust FPSO market environment,” said Flemming Grønnegaard, CEO of Yinson Production.
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.
The Singapore branch of UBS acted as financial advisor while A&O Shearman acted as legal advisor to the company in connection with this transaction.
With a current fleet of 10 vessels, Yinson Production has an orderbook of more than $22bn until 2048.
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