Yinson Annual Report 2020

53 Annual Report 2020 Our loans and borrowings position in the coming three years is expected to increase further due to the drawdown of a refinancing loan for FPSO JAK in Q1 FYE 2021 and project financing to be undertaken for the FPSO Anna Nery project in Brazil and other potential projects. Refinancing existing project financing An excellent illustration of the effectiveness of our financing strategy is the USD800 million refinancing loan agreement signed with 13 local and global banks, to refinance the existing loan on FPSO JAK in November 2019. The refinanced loan allows Yinson to enjoy lower interest rates whilst velocitising our future cashflows to be invested into other projects. The deal was well received by the financial community and was oversubscribed by over 45%. The following banks participated in the refinancing: • CIMB Bank Berhad • Clifford Capital Pte. Ltd. • Crédit Industriel Et Commercial • DBS Bank Ltd. • Korea Development Bank • Maybank Investment Bank Berhad • MUFG Bank, Ltd. • Natixis, Singapore Branch • Oversea-Chinese Banking Corporation Limited • Societe Generale, London Branch • Sumitomo Mitsui Banking Corporation • Standard Chartered Bank (Singapore) Limited • United Overseas Bank Limited Of the 13 banks participating in the refinancing exercise, seven banks were new capital providers to Yinson. This is a heartening result of Yinson’s efforts to widen its pool of capital providers and network. The loan was fully drawn down on 14 April 2020, with a tenure of 12 years. Engaging with Export Credit Agencies (“ECAs”) Additionally, to extend our reach to the available capital in the markets, we are strengthening our relationships with ECAs to support our project financing activities. As part of our financing strategy for our Brazilian FPSO projects, Yinson is in dialogue with several European and Asian ECAs to support the project finance (PF) loans. If successful, these ECAs will be able to provide guarantees in support of the PF loans, thereby providing greater liquidity for the project with increased appetite from the commercial lenders. Sustainability-linked financing Sustainability is one of Yinson’s Core Values, and an important value driver for all our stakeholders. We have focused on improving our ESG performance over the years, with the success of our efforts evidenced by our acceptance into the FTSE4Good index, and improvements in our sustainability ratings. Adopting SLF as a strategy in raising capital is in line with our focus on sustainability, as it encourages us to strengthen our ESG practices, leading to greater value for our stakeholders and a more sustainable future for everyone. Strengthen sustainability governance and reporting (pg 71)