The deal comprises an option for an additional $500m issuance within two years. Credit: James Jones Jr/Shutterstock.

Yinson Production Offshore Holdings, a newly established UK-based holding company of Yinson Production, has entered a definitive agreement with a consortium of international investment firms to issue $1bn in redeemable convertible preferred shares and 10% warrants at $3.7bn post money valuation.

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

The deal includes an option for an additional $500m issuance within two years, subject to terms.

The funding will support Yinson Production’s expansion plans, with $200m earmarked for distribution to its controlling shareholder, a subsidiary of Yinson Holdings Berhad.

Yinson Production CEO Flemming Grønnegaard said: “We are delighted to welcome ADIA, BCI and RRJ as new investors in Yinson Production.

“This is one of the largest structured equity transactions in South East Asia and the first platform-level equity raise by Yinson Production. It builds upon Yinson Production’s proven track record of delivering value accretive growth through our integrated platform. The growth capital will further strengthen our leading market position and enables us to seize opportunities in a robust FPSO [floating production storage and offloading] market environment.”

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The deal is due to be concluded in the first quarter of 2025, pending regulatory and shareholder approvals.

UBS AG, Singapore Branch and A&O Shearman provided financial and legal advisory services, respectively, to Yinson Production for this investment.

The successful closure of this deal will not only inject substantial capital into Yinson Production but also pave the way for potential further investment. In December 2024, Yinson Production’s FPSO Atlanta began oil production in Brazilian waters.