55 ANNUAL REPORT 2022 STRATEGY & OUTLOOK As a reward to existing shareholders for their continuing support, Yinson also undertook a 1-for-1 Bonus Issue, allowing shareholders to further participate in additional equity of the company. The proposal was approved by shareholders during the EGM held on 29 March 2022 and the exercise was completed on 14 April 2022. Additionally, after 8 years since our last rights issue in 2014 and completing four FPSO projects, we have also proposed for a Rights Issue with free warrants, to boost our position to deliver strongly on our new projects, utilising these as capital for the construction of FPSO Maria Quitéria and providing capital to accelerate the growth of our renewables and green technologies businesses. Funds will also be utilised for the repayment of bank borrowings, providing an annual interest savings of up to RM14.4 million based on the prevailing interest rate and strengthening our balance sheet for greater opportunities to come. We expect these activities to enhance shareholder value in the medium to long-term. RM1.0 billion raised through Malaysia’s first Sustainability-Linked Sukuk Wakalah programme In 2021, we successfully priced Malaysia’s first Sustainability-Linked Sukuk via the issuance of RM1.0 billion 5-year Sustainability-Linked Sukuk Wakalah pursuant to its Islamic Medium Term Notes Programme of up to RM1.0 billion in nominal value. The landmark tranche has been assigned a rating of A1 and A+ by RAM and MARC respectively, with a Second Party Opinion on its SLF Framework from ISS ESG. Due to overwhelming demand with an orderbook of RM1.66 billion, the offer size was upsized from an initial target of RM700 million to RM1.0 billion. The strong confidence and demand from investors were clearly reflected in the Sukuk Wakalah’s oversubscription of 1.66 times, allowing Yinson to tighten the issuance yield to 5.55%. SUSTAINABLE FINANCING HIGHLIGHT Yinson, together with HSBC Amanah, speaking to investors during the investor roadshow for the issuance of the RM1.0 billion Sustainability-Linked Sukuk Wakalah Programme. Yinson won the BPAM Bond Market Awards 2022 in the Top Issuance category in recognition of the issuance. The landmark issuance leverages on Yinson’s SLF Framework and Climate Goals Roadmap, supporting Yinson’s efforts to achieve its climate transition strategy and reinforce its commitment towards a low emission future by achieving carbon neutrality by 2030 and net zero by 2050. Through the link between Yinson’s SPTs and financial metrics, Yinson reaffirms its commitment towards achieving its Climate Goals. HSBC Amanah acted as the sole Principal Adviser, Lead Arranger, Lead Manager and Shariah Adviser for the Sukuk Wakalah Programme and Sustainability Structuring Agent for the Framework. Offering a sukuk that relies on our sustainability performance is both a challenge and a golden opportunity for Yinson to demonstrate the serious action that we are taking to achieve our climate-related targets. STRATEGY REVIEW
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