139 ANNUAL REPORT 2022 OUR CAPITALS FINANCIAL CAPITAL On a platform level, Yinson’s long-term equity structure includes perpetual securities and Sukuk Mudharabah. These instruments allow us to raise capital while not diluting the equity of our existing shareholding. Yinson has successfully expanded its capital structure with five issuances since its inaugural exercise in 2015, and in December 2021 has proposed a Renounceable Rights Issue together with free detachable warrants which aims to raise gross proceeds of up to RM1.22 billion. On top of these, we have also successfully raised corporate borrowings, which enable us to be flexible when providing funding for our equity requirements, in turn allowing us to pursue business opportunities in a timely manner. To navigate the increasingly challenging oil & gas financing landscape, we have been innovating and exploring other modes of financing such as project-level preference shares, non-recourse project equity, junior loans and local currency financing. Financing innovation highlight, pg 53; Sustainable financing highlight, pg 55; Financial Review, pg 66 With ESG performance becoming an increasingly important consideration for lenders and borrowers, Yinson has been actively exploring financial instruments that are linked to sustainability. Such instruments can capitalise on our leadership position in sustainability within the industry, whilst also incentivising us to manage our business more sustainably. Green bonds, for example, are an increasingly attractive source of funding due to their growing liquidity, driven by the increased appetite from ESG-focused investors. Financing & funding partners The execution of our capital strategy is made possible through the careful cultivation of our relationships with our financing and funding partners over the years. One of Yinson’s Core Values is being ‘open’ – meaning we are committed to fostering an environment of trust and honest communications. This Core Value guides how we engage and build relationships with banks and other funding partners, allowing them to better understand our business and appreciate its resilience. Over the years, we have built relationships with a network of banks active in FPSO financing. We believe that these strong relationships have been the key to the success of our capital raising initiatives over the years. We have been able to partner with banks to innovate new deal structures, and have also seen these deals positively received. Our diversification into renewables and green technologies, as well as with our central focus on sustainability, has led us to actively expand our network to bankers and lenders that are keen to support our growth in these areas. Starting these new relationships, and building them over the coming years, is a key strategy to ensure that we will continue to fund and grow our other business arms for years to come. YINSON’S RECENT FINANCING DEALS YEAR DEAL OUTCOMES 2021 RM1.0 billion Sustainability-Linked Sukuk Wakalah Programme • Offer upsized from an initial target of RM700 million to RM1.0 billion. • Oversubscribed by 1.66 times. USD670 million mini perm financing for FPSO Anna Nery • Underwritten by ING, Natixis and Standard Chartered Bank. • Total of 11 banks participating including the underwriting banks. INR5.8 billion refinancing for Bhadla solar plants • Extended tenors at reduced interest rates. 2020 USD400 million bridge financing for FPSO Anna Nery • Participated by 7 local and international banks. 2019 USD800 million refinancing of FPSO JAK • Participated by 13 local and international banks. • Oversubscribed by over 45%. Bankers & lenders, pg 124
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