RRJ invests $300m in Malaysia's Yinson
Hong Kong-based private equity firm RRJ Capital has agreed to invest USD 300m in Malaysia-listed Yinson Holdings, an oil and gas industry supplier aiming to bring cleantech to the local energy sector.
The commitment coincided with Yinson staging an experiential showcase of its cleantech projects across marine, mobility, and infrastructure segments. This includes electric bikes, swappable batteries, electric vehicle (EV) leasing, and EV charging systems under the DrivEV brand.
“We believe that participation of stakeholders from both the government and private sector, such as Yinson, is crucial to accelerate the implementation of low carbon mobility initiatives outlined within the NTP [National Transportation Policy],” Transport Minister YB Loke Siew Fook said in a statement.
Yinson is one of the largest independent owners and operators of oil and gas production vessels globally with an orderbook of more than USD 22bn until 2048. Its clean energy business includes about 5 gigawatts of assets, including DrivEV. The company has set a goal to be carbon neutral by 2030 and net zero by 2050.
Revenue improved 75% during financial 2023 to MYR 6.3bn (USD 1.4bn), while profit increased 47% to MYR 589m, with Yinson citing strong performance from oil and gas production assets off the coast of Brazil. Its stock has been stable year-to-date and was trading at MYR 2.55 as of mid-morning August 21, giving the company a market capitalisation of MYR 7.8bn.
“This long-term strategic partnership represents a significant milestone in our pursuit of shaping the future of energy and infrastructure projects globally,” RRJ CEO Richard Ong said. “Leveraging our expansive global network and valued partners, we seek to actively support Yinson in its aspirations of advancing innovative solutions and driving the creation of a sustainable tomorrow.”
Ong, formerly of Goldman Sachs and Hopu Investment Management, established RRJ in 2011 alongside Charles Ong, formerly of Temasek Holdings. The firm currently has about USD 15bn in capital under management, with core sectors including energy, transportation, logistic, financial services, and healthcare.
RRJ is currently deploying its fourth fund focused on China and Southeast Asia, which reached a first close of undisclosed size in late 2019. The most recent filing, made in early 2020, indicated that USD 225m had been raised. The third fund closed on USD 4.5bn in 2015.
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