KUALA LUMPUR: Yinson Holdings Bhd has successfully priced Malaysia’s first Sustainability-Linked Sukuk via the issuance of RM1 billion 5-year Sustainability-Linked Sukuk Wakalah pursuant to its Islamic Medium Term Notes Programme of up to RM1 billion in nominal value.
In a statement today, Yinson said the landmark tranche has been assigned a rating of A1 and A+ by RAM Ratings and Malaysian Rating Corporation Bhd respectively, with a second party opinion on its Sustainability-Linked Financing Framework from Institutional Shareholder Services (ISS) environmental, social and governance (ESG).
"Due to overwhelming demand with an order book of RM1.66 billion, the offer size was upsized from an initial target of RM700 million to RM1 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 per cent," it added.
Yinson said the landmark issuance leverages on its Sustainability-Linked Financing Framework and Climate Goals Roadmap, supporting its efforts to achieve climate transition strategy and reinforce commitment towards a low emission future by achieving carbon neutrality by 2030 and net-zero by 2050.
Group chief financial officer Guillaume Francois Jest said prudent management of the company's liquidity has been key to its survival in this fiercely competitive business environment, as this has allowed Yinson to fund projects and equity distributions, fulfil debt obligations, and importantly, manage unforeseen situations.
"We believe that our strong record in financial management, together with our industry-leading sustainability performance, has raised investor confidence, bringing about the overwhelming success of this sukuk programme," he said.
Yinson said HSBC Amanah is acting as the sole principal adviser, lead arranger, lead manager and shariah adviser for the sukuk wakalah programme and sustainability structuring agent for the framework. - Bernama