Al-`Aqar Healthcare REIT Annual Report 2019

06 FINANCIAL STATEMENT 148 Nominal value Rating Profit rate (%) 2019 2018 RM RM Non-current Issue II - Tranche 1 Issued on 4 May 2018 Class A IMTNs 220,000,000 220,000,000 AAA 4.64 Class B IMTNs 23,000,000 23,000,000 AA2 4.95 Class C IMTNs 220,000,000 220,000,000 Unrated 5.60 Class C IMTNs (iv) 112,000,000 112,000,000 Unrated 5.60 Total (iii) 575,000,000 575,000,000 Issue II - Tranche 2 Issued on 20 December 2018 Class A IMTNs 75,000,000 75,000,000 AAA 4.68 Class B IMTNs 37,000,000 37,000,000 AA2 4.98 Total (iv) 112,000,000 112,000,000 The Sukuk Ijarah Programme has the following significant covenants: • The Group has to maintain and build up the Finance Service Reserve Account (“FSRA”) an amount equivalent to 6 months periodic payments payable under the relevant tranche of Sukuk Ijarah (12 months period payments upon the occurrence of a Trigger Event defined under the Sukuk Ijarah Trust Deed dated 29 April 2013). The Fund in the FSRA may be invested in permitted investments but are not available for general use. • The Group shall at all times, maintain the following Finance Service Cover Ratio (“FSCR”): a) FSCR at Issue level of not less than 1.5 times; and b) FSCR at Al-`Aqar Healthcare REIT level of not less than 1.5 times; and c) such other financial covenant(s) as may be determined by RAM Rating Services Berhad (“RAM”) and to be mutually agreed to by Al-`Aqar Capital Sdn Bhd. The Sukuk Ijarah Programme was secured against the investment properties as disclosed in Note 11 amounting to RM1,249,200,000 (2018: RM1,231,700,000). Murabahah Tawarruq Term Financing-i On 30November 2018 the Fund obtained an Islamic financing facility (“Murabahah Tawarruq”) amounting to RM29,900,000 from Ambank Islamic Berhad to part finance the outstanding balance in relation to an investment property purchased in prior years amounting to RM38,900,000. The transaction costs incurred for the Murabahah Tawarruq was RM225,761. The Murabahah Tawarruq is payable over a period of 24 months from the date of first disbursement with bullet repayment of the principal sum on the 24th month. The Murabahah Notes To The Financial Statements For The Financial Year Ended 31 December 2019 (Continued) 17. ISLAMIC FINANCING (CONTINUED) Sukuk Ijarah (Continued)