Yinson Annual Report 2020

54 Yinson Holdings Berhad SECTION 4 OUR CAPITALS NATURAL SOCIAL & RELATIONSHIPS HUMAN ORGANISATIONAL MANUFACTURED FINANCIAL Yinson maintains a healthy cash and liquid investments balance of RM1.46 billion. The cash held is sufficient to meet business operational needs and support our project development activities. Our strategy for managing liquidity includes: • Maintaining an appropriate mix of high-quality liquid investments and adequate cash buffers to meet unexpected cash outflows • Maintaining cash flow projections to match the allocation of long-term financial capital with project capital expenditure needs • Conducting regular stress testing to assess cash flow vulnerability under stressed situations and deploying the necessary action plans. Cash and LIQUID investments Cash and liquid investments (RM’000) FYE 2020 1,464,952 FYE 2019 1,289,505 FYE 2018 717,021 FYE 2017 661,218 FYE 2016 493,103 The Group’s free and available cash presents a different perspective of our liquidity for our various business endeavours. This is quantified after isolating certain sources that have been earmarked to service loans and borrowings’ obligations, and its utilisation is subject to approvals by lenders in accordance to the financing agreements. A free and available cash position of RM886.36 million as at 31 January 2020 provides good support and flexibility for the Group to excel beyond its existing business boundaries. Free and available cash Free and available cash (RM’000) FYE 2020 886,358 FYE 2019 723,509 FYE 2018 291,295 FYE 2017 504,581 FYE 2016 210,969 In November 2019, Yinson was selected by HSBC Amanah to be an early adopter of Malaysia’s first SLF with a RM200 million revolving credit facility granted to Yinson. This tiered pricing product feature allows Yinson to receive a preferential financing rate of the facility upon meeting pre-agreed targets related to our ESG performance. Amongst indicators considered are the carbon intensity of our operations, reduction in waste produced, increased diversity and improvements in our overall ESG performance ratings.