KUALA LUMPUR (Dec 12): Yinson Holdings Bhd (KL:YINSON) has issued RM1.175 billion worth of dual-tranche sukuk wakalah to meet financing needs and support refinancing activities.

In a bourse filing on Friday, the group said the sukuk was issued under its newly established RM2 billion Islamic medium term notes programme. The issuance comprises five-year and seven-year tranches, offering periodic distributions of 5% and 5.2% respectively.

The bonds were assigned an A+(is) rating by MARC Ratings, while RAM Ratings gave them an A1 rating.

Yinson said the programme provides flexibility to issue sustainability sukuk wakalah and sustainability-linked sukuk wakalah in the future.

The floating, production, storage and offloading group added that proceeds will be used for capital expenditure, working capital, general corporate purposes, and shariah-compliant advances within the group.

Funds may also be channelled towards refinancing existing borrowings or future shariah-compliant facilities.

CIMB Investment Bank and HSBC Amanah acted as joint principal advisers and joint lead arrangers of the sukuk programme, while Affin Hwang Investment Bank, CIMB Investment Bank and HSBC Amanah served as joint lead managers for the first issuance.

Yinson shares closed unchanged at RM2.35 on Friday, valuing the group at RM7.56 billion. Year to date, the stock has fallen by 10.9%.