Yinson Holdings Berhad has 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 Sustainability-Linked Financing 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%.

The landmark issuance leverages on Yinson’s Sustainability-Linked Financing Framework (“Framework”) and Climate Goals Roadmap (“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 Sustainability Performance Targets and financial metrics, Yinson reaffirms its commitment towards achieving its Climate Goals.

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.

“Together with HSBC Amanah, we are proud to be making history by establishing, and successfully completing, Malaysia’s very first sustainability-linked sukuk programme. 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,” said Yinson’s Group Chief Strategy Officer Daniel Bong, adding that the sukuk was being raised for general corporate purposes including to fuel the growth of the Group’s upcoming infrastructure projects.

“HSBC Amanah is honoured to have played a key role in the establishment of Yinson’s Sukuk Wakalah Programme and to have advised on the formation of the client’s Sustainability Linked Financing Framework. Our partnership with Yinson reinforces our focus on supporting customers across industries in their transitions. Moreover, the high-quality investor demand and oversubscription of the sukuk highlights the strong interest of the investment community in a rapidly changing business environment. Importantly, this is also a reflection of our commitment to supporting the Malaysian government in the development of the sustainable finance landscape while achieving the country’s sustainability ambitions. HSBC Amanah itself is on a path towards growing assets in line with the Triple Bottom Line principles for the prosperity of people and the planet and our involvement in this Programme highlights part of the work that is being done to achieve this goal”, said Raja Amir Shah, CEO, HSBC Amanah.