Yinson Annual Report 2020

135 Annual Report 2020 consortium led by Sumitomo. When selecting a partner for the project, which was our largest project at that time, we considered both the quantitative and qualitative aspects of the offers we received for the stake. In Sumitomo, we saw a partner that, like us, was seeking long-term strategic partnership, and not just financial returns on a single project. That transaction was the first step toward a deeper partnership which was cemented with a 10-year MoU for collaboration on FPSO and FSO projects in 2018. As a result of the partnership, we now have a capital partner to embark on future, larger projects. Jointly, Yinson and Sumitomo with a 25% stake, won the bid for FPSO Anna Nery project in Brazil. and global banks to refinance FPSO JAK, allowing us to enjoy lower interest rates while freeing up capital to be invested in future projects. The deal was oversubscribed by over 45%, an indication of the strong support Yinson receives from the financial community. Additionally, as part of our financing strategy for our Brazil project, we are in discussion with several Export Credit Agencies to provide guarantees in support of the project finance loan which would allow greater liquidity for participating commercial lenders. As part of our capital strategy to enhance equity and maximise leverage potential without the need for further cash calls on our equity holders, we continue to utilise Perpetual Securities and other Hybrid Equity Instruments to raise capital for the Group, with the most recent being a USD120 million Perpetual Security issued in 2019. Our deals have earned us several accolades throughout the years, Refinancing existing project financing, Engaging with Export Credit Agencies (pg 53) including awards from IFN, IFR, Alpha Southeast Asia and Asset Asia. While some may be concerned about such instruments, we are constantly stress testing our future cash flows to ensure serviceability of all outstanding instruments. The Perpetual Securities are raised for equity injection into projects and have minimum non-call period of 5 years on launching. The use of these financial instruments keeps to Yinson’s strategy to provide liquidity during project execution and to be velocitised at a later stage to achieve the optimal returns for each project. Perpetual securities holders (pg 52) Partners (pg 119) Sustainability Statement (pg 42) Yinson also aims to enlarge our banking network to broaden our financial resources for future growth. In November 2019, Yinson sealed a USD800 million refinancing project finance loan agreement with 13 local In the global shift to a low carbon economy, we continue to adapt and develop our energy business to be more sustainable with due consideration to all our stakeholders. We continue to devote significant resources to improving our sustainability performance.