Yinson issues RM424mil perpetual securities

Yinson Holdings Bhd FPSO John Agyekum Kufuor

KUALA LUMPUR: Yinson Holdings Bhd’s unit Yinson Juniper Ltd has issued US$100mil (RM423.7mil) perpetual securities, the first tranche under its US$500mil multi-currency perpetual securities programme set up in July.

Yinson, which provides floating, production, storage and offloading (FPSO) services to the oil and gas industry, made the issuance on Thursday by way of book building.

It told Bursa Malaysia that these securities, issued at par with a coupon rate of 7.85% and with a call option on the fifth anniversary of their issuance. were officially listed on the Singapore Exchange Securities Trading Ltd on Friday.

“The unique characteristics of the perpetual securities lend towards lowering the gearing levels of the group while buffering equity base and aiding to extend financing maturities,” Yinson said in a press statement. 

The investor base, it noted, was drawn from among asset managers, investment management funds and private bank accounts from both domestic and international markets.

The issuance marks the group’s third capital market transaction since its inaugural capital market issuance in September 2015.

“Despite challenging market conditions, we are very encouraged by another successful issuance,” said executive chairman Lim Han Weng. “This demonstrates investors’ continued confidence towards the Group and our business prospects. We look forward to deploying capital raised towards new investments and, armed with our proud project execution track record, we are confident of rewarding our investors for their trust and support.”

Yinson said proceeds from the issuance would be used for the group’s general corporate purpose and, in particular, future capital investments.

The perpetual securities programme was set up on July 12 by Yinson Juniper, a company incorporated in the British Virgin Islands, and is unconditionally and irrevocably guaranteed by Yinson.

Standard Chartered Bank is the principal adviser, sole arranger and dealer for the programme.

In a separate filing with the exchange, Yinson said Lembaga Tabung Haji (LTH) had ceased to be it substantial shareholder after disposing of 14 million shares with a market value of RM50.3mil.

This pared down the fund’s shareholding in Yinson to 40.9 million shares or 3.76%.

The counter closed one sen lower at RM3.59 on Friday with 356,400 shares changing hands.