Tropicana Corporation Berhad Annual Report 2020

32. BORROWINGS (CONT'D.) Other information on financial risks of borrowings are disclosed in Note 40. Company 2020 2019 RM'000 RM'000 Unsecured corporate guarantees given to banks for credit facilities granted to: - Subsidiaries 2,104,250 2,341,307 - Joint ventures 39,164 28,524 - Associate 77,817 83,965 2,221,231 2,453,796 As at 31 December 2020, the Group has the following undrawn banking facilities: Group 2020 2019 RM'000 RM'000 Banking facilities obtained by the subsidiaries 386,250 314,955 Banking facilities obtained by the joint ventures 103,324 40,281 Banking facilities obtained by the associate 220,000 200,000 (a) Hire purchase The Group has finance leases for certain items of property, plant and equipment. Future minimum lease payments under finance leases together with the present value of the net minimum lease payments are as follows: Group Company 2020 2019 2020 2019 RM'000 RM'000 RM'000 RM'000 Minimum lease payments: Not later than 1 year – 462 – 54 Later than 1 year but not later than 2 years – 150 – 82 Later than 2 years but not later than 5 years – 164 – 129 Total minimum lease payments – 776 – 265 Less: Amount representing finance charges – (55) – (22) Present value of minimum lease payments – 721 – 243 32. BORROWINGS (CONT'D.) (a) Hire purchase (cont'd.) The Group has finance leases for certain items of property, plant and equipment. Future minimum lease payments under finance leases together with the present value of the net minimum lease payments are as follows: (cont'd.) Group Company 2020 2019 2020 2019 RM'000 RM'000 RM'000 RM'000 Present value of payments: Not later than 1 year – 426 – 44 Later than 1 year but not later than 2 years – 139 – 74 Later than 2 years but not later than 5 years – 156 – 125 Present value of minimum lease payments – 721 – 243 Less: Amount due within 12 months – (426) – (44) Amount due after 12 months – 295 – 199 These obligations are secured by charge over the leased property, plant and equipment as disclosed in Note 15. In the previous financial year, the discount rates implicit in the leases range from 4.15% to 9.25%. (b) Islamic Medium Term Notes On 22 April 2020, the Company had lodged the proposed establishment of a rated Islamic Medium Term Notes Programme of up to RM1.5 billion in nominal value based on the Shariah principles of Wakalah Bi Al-Istithmar and Murabahah (via Tawarruq arrangement) (" Sukuk Wakalah Programme ") with the Securities Commission Malaysia (" SC ") pursuant to the SC's Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework (issued by the SC on 9 March 2015 and revised on 26 November 2019, as amended from time to time). The Sukuk Wakalah Programme allows for the issuance of rated and senior ranking sukuk (" Sukuk Wakalah ") from time to time, with flexibility for the Company to issue secured and/or unsecured Sukuk Wakalah subject to the aggregate outstanding nominal amount of the Sukuk Wakalah not exceeding RM1.5 billion at any point in time. During the financial year ended 31 December 2020, the Company had issued the Sukuk Wakalah as follows: Yield-to- Amount maturity Tenure Tranche No Date of issuance (RM'000) (per annum) year 1 14 May 2020 200,000 5.80% 7 2 30 June 2020 465,500 5.50% 3 2 30 June 2020 123,500 5.65% 5 3 3 September 2020 100,000 5.65% 5 4 8 October 2020 179,000 5.45% 3 4 8 October 2020 139,000 5.65% 5 1,207,000 The Sukuk Wakalah is secured by third party legal charge over the lands held under inventories as disclosed in Note 16 and financial service reserve account as disclosed in Note 26. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 ANNUAL REPORT 2020 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 264 265