KUALA LUMPUR: Energy infrastructure firm Yinson Holdings Bhd. is close to signing up investors for a funding round in its unit that makes equipment used by the offshore oil and gas industry, according to people with knowledge of the matter.
Abu Dhabi Investment Authority, British Columbia Investment Management Corp. and RRJ Capital will likely subscribe to $1 billion in redeemable convertible preference shares as soon as this week, the people said, asking not to be identified because the process is private. The trio is also expected to subscribe to another $500 million at a later, unspecified date, according to the people.
The funding round for Yinson Production Offshore Pte comes ahead of an initial public offering for the so-called FPSO - floating production, storage and offloading - company, which could take place in a few years’ time, the people said.
Talks are ongoing and may not result in a deal, the people added. Representatives for Yinson, ADIA and RRJ, a private equity firm founded by former Goldman Sachs Group Inc. banker Richard Ong, declined to comment. BCI didn’t immediately respond to a request for comment.
Bloomberg News has previously reported that Yinson was close to picking the three investors for the private fundraising, as well as RRJ planning to commit $320 million to the round.
Yinson Production has contracts with firms including Brazil’s Petrobras and the Angolan joint venture of BP Plc and Eni SpA. Global Infrastructure Partners and Sumitomo Corp. are also among backers of the unit’s projects. - Bloomberg