Yinson Annual Report 2020

317 Annual Report 2020 45. Perpetual securities (continued) (ii) By Yinson Juniper Ltd (“YJL”) (a) USD100 million On 5 October 2017, YJL, a wholly owned subsidiary of the Company issued perpetual securities of USD100 million under its USD500 million Multi-Currency Perpetual Securities Programme. The perpetual securities are: • unconditionally and irrevocably guaranteed by the Company; • direct, unsecured, unconditional and unsubordinated obligations of the subsidiary; and • rank at least pari passuwithall other present and futureunsecured, unconditional andunsubordinated obligations of the subsidiary, save for such obligations as may be preferred by provisions of law that are both mandatory and of general application. The perpetual securities are unrated and are listed on the Singapore Exchange Securities Trading Limited bearing no fixed maturity date but are redeemable at YJL’s option 5 years from date of issuance (“First Reset Date”) fall due on 5 October 2022. The issued instrument carries a periodic distribution rate of 7.85% per annum, distributable semi-annually calculated at the nominal value of securities issued. The distribution rate will subject to an agreed step-up margin of 5% per annum above the prevailing U.S. Treasury Rate after First Reset Date. Pursuant to the terms and conditions of the program, YJL has no obligation to pay any distribution and has the option to elect for distribution deferment at its sole discretion, which does not constitute a default. The perpetual securities may also be redeemed at the option of YJL upon the occurrence of certain events by YJL in accordance with the terms and conditions of the perpetual securities. From the Group’s perspective under MFRS 132 “Financial Instruments: Presentation”, the Perpetual Securities is classified as equity because the payment of any distribution or redemption is at the discretion of the Group. (b) USD120 million YJL, a wholly owned subsidiary of the Company has completed two further issuances of Perpetual Securities valued USD90 million and USD30 million on bought deal basis under its USD500 million Multi- Currency Perpetual Securities Program on 29 March 2019 and 5 April 2019 respectively. Both the Perpetual Securities are unrated, not listed on any stock exchange, and bear no fixed maturity date but are redeemable at YJL’s option from First Reset Date fall on 29 March 2024. The issued Perpetual Securities carry periodic distribution rate of 8.10% per annum, distributable semi-annually calculated at the nominal value of securities issued. The distribution rate will subject to an agreed step-up margin of 5% per annum above the prevailing U.S. Treasury Rate after First Reset Date. Pursuant to the terms and conditions of the program, YJL has no obligation to pay any distribution and has the option to elect for distribution deferment at its sole discretion, which does not constitute a default. The Perpetual Securities may also be redeemed at the option of YJL upon the occurrence of certain events by YJL in accordance with the terms and conditions of the Perpetual Securities. From the Group’s perspective under MFRS 132 “Financial Instruments: Presentation”, the Perpetual Securities will be classified as equity in financial year ending 31 January 2020 because the payment of any distribution or redemption is at the discretion of the Group.