Kuala Lumpur: Yinson Holdings Bhd’s subsidiary, Yinson Production, has finalized a US$1 billion investment deal with a consortium. The consortium includes a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), funds managed by British Columbia Investment Management Corporation (BCI), and RRJ Group.

According to BERNAMA News Agency, the successful closing of the transaction follows the signing of a definitive agreement on January 14, 2025, and the fulfillment of closing conditions, including regulatory approvals and Yinson shareholder approval. The investment involves the issuance of US$1 billion in redeemable convertible preferred shares (RCPS) and warrants by Yinson Production Offshore Holdings Ltd, a newly established UK-based holding company. The agreement allows for the issuance of additional RCPS of up to US$500 million within 24 months from closing, subject to agreement.

Upon the deal’s closure, the investors funded an initial tranche of US$300 million, with US$200 million allocated for a special distribution to Yinson. The remaining US$700 million of committed RCPS will be called in up to three installments by December 2026.

Yinson Production’s chief financial officer, Markus Wenker, stated that the investment reflects the quality of the business, with visible cash flows and a significant revenue backlog. He emphasized that the transaction strengthens their financial foundation, positioning them to pursue new opportunities in the evolving offshore energy sector. Yinson Production operates as an independent owner and operator of floating storage, production, and offloading vessels.