Yinson Holdings Bhd has issued RM1.66 billion in sustainability-linked sukuk wakalah programme in Malaysia. The offering, which has a five-year term and a profit rate of 5.55 per cent, was increased from an initial target of RM700 million due to a strong orderbook.
The sukuk is tied to three of Yinson’s sustainability targets to be fulfilled by January 31, 2025. These targets include increasing total renewable energy (RE) generation, reducing carbon intensity per barrel of oil equivalent, and decreasing operational carbon intensity per MWh.
HSBC Amanah Malaysia Bhd is the sukuk wakalah program’s single main adviser and lead arranger, as well as the sukuk issuance’s lead manager and sustainability-linked structuring agent for Yinson’s sustainability-linked financing framework.
Malaysia’s first ever sustainability-linked sukuk was issued on the basis of Yinson’s Sustainability-Linked Financing Framework, which is in line with the International Capital Market Association’s (ICMA) Sustainability-Linked Bond Principles and the company’s Climate Goals Roadmap.