Singapore’s Yinson Production Secures $1 Billion Investment for Growth

Singapore-based floater owner and operator Yinson Production has recently announced a major milestone in its growth strategy with the securing of a $1 billion investment from a consortium of international investment companies. This significant investment is set to drive further expansion and development for the company.

Yinson Production, operating through its newly established UK-based holding company Yinson Production Offshore Holdings Limited, has entered into a definitive agreement with a consortium consisting of the Abu Dhabi Investment Authority’s subsidiary Platinum Lily B 2024 RSC, British Columbia Investment Management Corporation, and RRJ Group. The agreement involves the issuance of $1 billion in redeemable convertible preferred shares and 10% warrants at a post-money valuation of $3.7 billion.

Additionally, the agreement allows for the potential issuance of up to $500 million in additional redeemable convertible preferred shares within 24 months from the closing of the initial transaction.

The primary focus of the investment proceeds will be to support Yinson Production’s ongoing growth initiatives, with a portion of the funds earmarked for a $200 million distribution to the controlling shareholder, a subsidiary of Yinson Holdings.

Yinson Production’s CEO, Flemming Grønnegaard, expressed enthusiasm for the deal, stating, “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.”

The transaction is anticipated to be finalized in the first quarter of 2025, pending customary closing conditions such as regulatory approvals and shareholder consent from Yinson Holdings.

Financial advisory services for the transaction were provided by the Singapore branch of UBS, with legal counsel from A&O Shearman assisting Yinson Production throughout the process.

Yinson Production currently operates a fleet of 10 vessels and boasts an order book exceeding $22 billion extending until 2048, positioning the company for continued success and growth in the offshore energy sector.