YINSON INDIRECT UNIT SECURES RM4.48 BLN INVESTMENT FROM CONSORTIUM OF GLOBAL INVESTMENT FIRMS

KUALA LUMPUR, Jan 14 (Bernama) -- Yinson Holdings Bhd’s indirect wholly owned subsidiary Yinson Production Offshore Holdings Ltd (YPOHL) has secured US$1 billion (RM4.48 billion) investment from a consortium of international investment firms to drive further growth. 

Yinson said the investment comes with the option to upsize to US$1.5 billion within 24 months.

The consortium of investors comprises Platinum Lily B 2024 RSC Ltd, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), funds managed by British Columbia Investment Management Corporation (BCI), and RRJ Group.

It said in a Bursa Malaysia filing today that the investment will enable the group to raise the requisite proceeds to be used in the general corporate purposes of the YPOHL Group (RM3.51 billion); expansion of renewable energy business (RM268.53 million); and expansion of green technology business (RM89.51 million).

Besides, it will be utilised for the repayment of bank borrowings (RM89.51 million), working capital for the Group (RM313.29 million), distribution to shareholders of Yinson through share buy-back and dividends (RM134.27 million), and estimated expenses relating to the proposed YPOHL redeemable convertible preference shares (RCPS) and warrants issue (RM69.37 million). 

“The proposed YPOHL RCPS and warrants issue allows the group to raise funds to cover the acquisition and conversion costs of vessels for the new floating production storage and offloading (FPSO) projects that the group secures.

“The proposed YPOHL RCPS and warrants issue will grant YPOHL the flexibility and enables better control over its cash flows while at the time allowing Yinson to maintain its equity interest in YPOHL without being immediately diluted, which would otherwise arise from the issuance of new YPOHL shares,” it said.

Meanwhile, Yinson Group chief executive officer Lim Chern Yuan said in a statement that the group is very pleased to welcome ADIA, BCI and RRJ as new investors in Yinson Production.

“This landmark transaction comes at a pivotal juncture for Yinson, allowing Yinson Production to capture the great opportunities in the current robust FPSO market, and for Yinson to return capital to our shareholders and fund our energy transifion businesses, Yinson Renewables and Yinson GreenTech.

“We firmly believe in the confinued growth of energy demand and also the need for an inclusive energy transifion,” he said. 

The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions, including regulatory approvals and Yinson shareholders’ approval.

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

-- BERNAMA