KUALA LUMPUR (June 17): Yinson Holdings Bhd (KL:YINSON) said it has closed the first tranche of US$300 million (RM1.27 billion) from US$1 billion committed by a consortium of international investors.
The financial close follows the issuance of 300,000 redeemable convertible preference shares (RCPS) and 300,000 warrants to the investors by its UK-based holding company Yinson Production Offshore Holdings Ltd, according to an exchange filing.
Out of the first tranche’s US$300 million, Yinson said it received US$200 million from a special distribution and US$100 million is retained as capital expenditure at Yinson Production.
The remaining US$700 million in committed RCPS will be drawn down in up to three instalments by December 2026.
“This investment not only reflects the quality of our business with highly visible cash flows and significant revenue backlog, but underscores the confidence in Yinson Production’s long-term growth potential,” said Markus Wenker, chief financial officer of Yinson Production.
By strengthening its balance sheet, “this transaction positions us well to pursue new opportunities in a rapidly evolving offshore energy landscape,” he added.
The agreement with Abu Dhabi Investment Authority and funds managed by British Columbia Investment Management Corporation and RRJ Group provides for the option to issue additional RCPS of up to US$500 million within 24 months from closing, subject to agreement.
On January 14, the consortium signed a definitive agreement that valued Yinson Production at US$3.67 billion after the investment.
On Tuesday’s midday break, Yinson shares were down 3 sen or 1.3% at RM2.33, valuing the group at RM7.17 billion. Year-to-date, the stock has fallen 11.7%.