In February 2020, Yinson collaborated with HSBC Amanah to deploy a market-leading Islamic sustainability-linked financing with a RM200 million revolving credit facility granted to Yinson. This tiered pricing product feature allows Yinson to receive a discounted financing rate of the facility upon meeting pre-agreed targets related to our ESG performance.

In August 2021, Yinson’s actual performance against the sustainability KPIs were measured and validated based on Yinson’s ESG Risk Rating Report from Sustainalytics. The Group successfully achieved the stretch targets, thus discounted rates were applied to new drawdowns – creating even greater value for our shareholders and stakeholders.

On 25 November 2021, Yinson 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 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. HSBC Amanah acted as the sole Principal Adviser, Lead Arranger, Lead Manager and Shariah Agent for the Sukuk Wakalah Programme and Sustainability-Linked Structuring Agent for the Framework.

Due to overwhelming demand with 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%.

A unique feature of the Sukuk Wakalah is the link to Yinson’s Sustainability Performance Targets, which would trigger profit rate step ups across remaining profit payment dates should the targets not be met. Yinson views the deal as both a challenge and a golden opportunity for the Group to demonstrate the serious action we are taking to achieve their climate-related targets.