52 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 Cash flows from investing and financing activities In FYE 2023, cash flows generated from financing activities, primarily through the drawdown of loans and borrowings and the rights issue completed on 28 June 2022, were deployed towards funding the project execution and investing activities of the Group, as presented in the Statements of Cash Flows from pages 184 to 188, which is in line with the Group’s strategy of building a diverse portfolio of assets by growing and developing new businesses. As at 31 January 2023, the Group’s total undrawn borrowing facilities and perpetual securities amounted to RM5.3 billion, which comprised a project financing term loan facility of RM3.2 billion, Perpetual Sukuk of RM1.8 billion and revolving credit facilities of RM296 million. These facilities are secured primarily to finance the Group’s ongoing and new FPSO projects, and expansion in the Renewables and Green Technologies businesses. Our purpose for these increased borrowings is to finance our growth and to strengthen our cash position, providing assurance of our ability to service our debts and pay our bondholders in future. Structuring our finances with a long-term vision also allows us to secure funding at a lower cost. With our strong order book and the continued availability of these borrowing facilities and perpetual securities to support our current level of operations, the Group is confident that it has sufficient liquidity to meet its liabilities in the foreseeable future. FINANCIAL REVIEW FINANCING ACTIVITIES Leverage indicators Gearing Ratio (times) Net Gearing Ratio (times) Based on total borrowings Based on total borrowings less non-recourse borrowings 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 0.91 1.48 1.00 1.85 0.40 1.01 0.78 1.52 0.16 0.87 FYE 0.65 1.23 0.39 1.24 0.01 0.63 0.27 1.01 (0.19) 0.51 FYE
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