Yinson has proposed a 1-for-1 Bonus Issue, which will see an issuance of up to 1,112,540,173 Bonus Shares.

This proposed Bonus Issue exercise rewards existing shareholders for their continued support, and encourages greater participation in the Group’s equity given the larger share base. The entitlement date will be announced later upon receiving all the relevant approvals.

Yinson has also proposed a Renounceable Rights Issue together with free detachable warrants to follow suit upon completion of the proposed Bonus Issue to raise estimated gross proceeds of approximately RM1.10 billion to RM1.22 billion. This Rights Issue will improve the net gearing and financial position of the Group. Approximately up to 42.1% of the proceeds have been earmarked for Yinson’s new USD5.2 billion FPSO project by Petróleo Brasileiro S.A. which will be operating in the North Campos Basin, offshore Brazil. In addition, approximately up to 49.1% will be for repayment of bank borrowings, while the balance of the gross proceeds will be earmarked for expansion of Yinson’s renewables and green technology businesses, working capital, and expenses related to the implementation of the proposed Bonus Issue and Rights Issue.

The warrants will be attached to the Rights Issue shares at no additional cost and will be issued to entitled shareholders that have subscribed for the Rights Issue shares. The two proposals are expected to be completed in the second quarter of 2022.

Commenting on the proposals, Yinson Group Chief Executive Officer Lim Chern Yuan said, “Our last Rights Issue was in 2014, after which Yinson successfully completed four FPSO projects. This time, part of the proceeds will be utilised to pay off bank borrowings, which will result in an annual interest savings of approximately up to RM22.5 million, whilst providing additional capital to accelerate the growth of our renewables and green technologies businesses.”

Group Chief Strategy Officer Daniel Bong commented, “Yinson’s businesses have been on a steady, yet exciting trajectory of growth, making now the opportune time for us to execute these proposals. These initiatives form part of our capital strategy, which allows our businesses to access capital markets and execute our growth plans.”