(Reuters) – Malaysia’s Yinson Holdings said on Tuesday said that it has secured a $1 billion funding round for its unit that makes equipment for the oil and gas industry.
The proceeds come ahead of the unit Yinson Production’s initial public offering, and include investments in redeemable convertible preferred shares from the Abu Dhabi Investment Authority and British Columbia Investment Management.
The funding, expected to close in the first quarter of 2025, will primarily support the unit’s expansion, with $200 million for distribution to the energy infrastructure parent.
Asian investment firm RRJ Capital also participated in the redeemable convertible preferred shares raising. The three firms are expected to subscribe for an additional $500 million within two years of the round.
RRJ Group in 2023 had invested $300 million for Yinson’s floating production storage and offloading vessel in Angola.
Yinson Production, a floating production, storage and offloading company (FPSO) has existing contracts with the joint venture between British oil giant BP Plc and Italy’s Eni SpA. It also has a contract in place with Brazil’s Petrobras.
(Reporting by Nichiket Sunil in Bengaluru)
