Malaysia-based floating storage, production and offloading (FPSO) vessels operator Yinson Production has secured $1 billion investment from consortium of international investment firms to drive further growth.

The firm said in a statement on Tuesday that it through its newly established UK-based holding company Yinson Production Offshore Holdings Limited 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, to issue $1 billion in redeemable convertible preferred shares (RCPS) and 10 percent warrants at a post money valuation of $3.7 billion.

The agreement provides the option to issue additional RCPS of up to $500 million within 24 months from closing.

The proceeds from the transaction will primarily support Yinson Production’s further growth, whilst $200 million will be used for distribution to the controlling shareholder, a wholly owned subsidiary of Yinson Holdings Berhad.

“We are very pleased to welcome ADIA, BCI and RRJ as new investors in Yinson Production,

“This is one of the largest structured equity transactions in Southeast Asia and the first platform-level equity raise by Yinson Production,” said Flemming Grønnegaard, Chief Executive Officer of 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,” he added.

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.

UBS AG, Singapore Branch acted as financial advisor and A&O Shearman acted as legal advisor to Yinson Production in connection with this transaction.

As a subsidiary of Yinson Holdings Berhad, a Malaysia-listed energy infrastructure and technology company, Yinson Production is an independent owner and operator of FPSO vessels.

With a current fleet of 10 vessels, Yinson Production has an orderbook of more than $22 billion until 2048 and global presence in ten countries.

The firm’s innovative Zero Emissions FPSO Concept is paving the way for the decarbonization of the FPSO industry

Yinson is also active in renewable energy with Yinson Renewables, green technologies with Yinson GreenTech, sustainable investment and asset management with Farosson, and offshore marine with Regulus Offshore.

Established in 1976, ADIA is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation.

BCI is amongst the largest institutional investors in Canada with CAD 250.4 billion ($174.39 billion) in gross assets under management, as of March 31, 2024.

Based in Victoria, British Columbia, with offices in Vancouver, New York City, and London, U.K., BCI manages a portfolio of diversified public and private market investments on behalf of its British Columbia pension fund and institutional clients.

Founded in 2011, RRJ is an Asian-based private equity group with over $25 billion of long-term capital under management.

RRJ has a strategic focus in key industries, including energy, transportation, logistics, financial services, and healthcare across geographic regions, with portfolio companies diversified across Asia Pacific, Europe, and the United States.

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