KUALA LUMPUR (Dec 7): Yinson Holdings Bhd said it has issued the entire RM1 billion sustainability-linked sukuk wakalah programme, which it said represents Malaysia’s first ever sustainability-linked sukuk.

The issuance, which has a tenure of five years and profit rate of 5.55%, was upsized from an initial target of RM700 million on the back of a robust orderbook of RM1.66 billion, Yinson said in a statement.

The sukuk wakalah programme has been assigned a credit rating of A+IS and A1 by Malaysian Rating Corp Bhd and RAM Rating Services Bhd respectively, both with a stable outlook, the company said.

“The sustainability-linked sukuk issuance, which was issued on the back of the company’s Sustainability-Linked Financing Framework, aligned with the International Capital Market Association’s (ICMA) Sustainability-Linked Bond Principles and Yinson’s Climate Goals Roadmap, represents Malaysia’s first ever sustainability-linked sukuk,” Yinson said.  

The sukuk is also tied to three sustainability performance targets to be achieved by Jan 31, 2025, Yinson said.

These comprise for Yinson to increase its renewable energy generation, to reduce its carbon intensity per barrel of oil equivalent, and to decrease its carbon intensity per megawatt-hour.

Proceeds from the issuance will be used for the company's working capital and refinancing of its borrowings.

HSBC Amanah Malaysia Bhd is the sole principal adviser and lead arranger for the sukuk wakalah programme, sole sustainability-linked structuring agent for Yinson’s sustainability-linked financing framework, and lead manager for the sukuk issuance.

Shares of Yinson rose four sen to RM5.64, giving the floating, production, storage and offloading operator a market capitalisation of RM6.2 billion.