Yinson Production Secures $100 Million Standby Letter of Credit and Guarantee Facility

Malaysia’s Yinson Production, a subsidiary of Kuala Lumpur-based energy infrastructure and technology company Yinson, has entered into a corporate-level standby letter of credit and guarantee facility to enhance its liquidity.

The company has successfully structured and arranged a $100 million stand-by letter of credit and guarantee facility with multiple banks. This three-year facility, with extension options, expands Yinson Production’s strategic financing capabilities, providing increased financial flexibility and improved cash management.

Yinson Production views this financial milestone as a testament to its strong position as a leading independent floating production, storage, and offloading (FPSO) owner and operator globally. The facility signifies the continued confidence of its banking partners in the company’s strategy and credit quality.

Markus Wenker, CFO of Yinson Production, commented on the significance of this achievement, stating, “This is Yinson Production’s first corporate-level standby letter of credit and guarantee facility – a structure tailored to our needs that further enhances capital efficiency by unlocking liquidity otherwise tied up in reserve accounts. It also provides added flexibility to support new projects, aligning with our growth ambitions amid strong market demand for new FPSOs.”

Earlier this year, Yinson Production raised $1 billion in equity with the option to increase it to $1.5 billion by issuing additional redeemable convertible preferred shares (RCPS) of up to $500 million within 24 months of closing, subject to agreement. This followed a $100 million tap issue in 2024 to increase the total corporate bond amount to $600 million, aimed at financing the upgrade of its FPSO units.