Singapore-based FPSO firm Yinson Production Secures USD 1.5bn Investment through Convertible Shares to Drive Expansion
By Velizar Velikov, Head of M&A Database at EMIS
Singapore-based floating, production, storage, and offloading (FPSO) services provider Yinson Production Offshore has secured a USD 1.5bn investment from a consortium of global investors, including Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corp (BCI), and Hong Kong-based RRJ Capital. The investment, structured as redeemable convertible preference shares (RCPS) and warrants, could result in the investors acquiring up to a 42.4% stake in Yinson Production, depending on certain conditions.
The pre-IPO funding package includes an initial USD 1bn in RCPS and 10% warrants at a post money valuation of USD 3.7bn, with an option to increase the investment to UD 1.5bn within 24 months.
Proceeds from this investment will be used to expand Yinson’s FPSO fleet, develop renewable energy and green technology initiatives, repay bank borrowings, support working capital needs, and finance share buy-backs. Additionally, USD 200mn will be distributed to Yinson Holdings Berhad, Yinson Production’s controlling shareholder.
Yinson Production CEO Flemming Grønnegaard highlighted the significance of this transaction, calling it one of Southeast Asia’s largest structured equity deals and Yinson’s first platform-level equity raise. He emphasized that the growth capital will further solidify Yinson’s leadership in the FPSO sector, allowing the company to seize market opportunities and drive innovation in sustainable FPSO designs.
Yinson Production, a wholly owned subsidiary of Malaysia-based Yinson Holdings, is a leading independent FPSO operator, with a fleet of 10 vessels deployed across Vietnam, Ghana, Malaysia, Nigeria, Brazil, and Angola. The company reported USD 2.5bn in revenue in January 2024 and holds an order book exceeding USD 22bn until 2048.
ADIA is one of the world’s largest sovereign wealth funds, managing assets for the Government of Abu Dhabi.
BCI is a top institutional investor managing USD 175.3bn in assets for British Columbia’s public pension and institutional clients.
RRJ Capital is a private equity firm with USD 25bn in managed assets, investing across energy, financial services, and infrastructure.
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