NOTES TO THE FINANCIAL STATEMENTS Cont’d 17. Loans and borrowings cont’d 17.1 Bank loans cont’d Securities and guarantees cont’d Loan 11 Guaranteed by the Company Loan 12 No security or guarantee Loan 13 Guaranteed by the Company Loan 14 Guaranteed by the Company Loan 15 Guaranteed by a subsidiary Loan 16 No security or guarantee Significant covenants In connection with the significant bank loan facilities of Press Metal Bintulu Sdn. Bhd., the Company and the subsidiary have agreed on the following significant covenants with the lenders: Press Metal Bintulu Sdn. Bhd. (Loan 13) i) The subsidiary shall maintain a maximum net debt to tangible net worth of not more than 1.50 times, net debt-to-earnings before interest, taxes, depreciation and amortisation (“EBITDA”) of not more than 3.00 times and minimum DSCR of 1.25 times; ii) The consolidated financial statements of the Group shall maintain a maximum net debt to tangible net worth of not more than 1.50 times and net debt-to-EBITDA of not more than 3.50 times; and iii) The existing shareholders shall maintain their shareholdings in the subsidiary. Press Metal Aluminium Holdings Berhad (Loans 6, 7, 8 and 12) The consolidated financial statements of the Group shall maintain a maximum gross debt to tangible net worth of not more than 1.50 times and a minimum debt service coverage ratio (“DSCR”) of 1.25 times. 17.2 Islamic Medium-Term Notes In August 2019, the Company made a lodgement with the Securities Commission Malaysia for the establishment of Islamic Medium-Term Notes of RM5.0 billion in nominal value based on the Shariah Principle of Wakalah Bi Al-Istithmar (“Sukuk Programme”), for a tenure of up to thirty (30) years. In October 2019, the Company made its first issuance of the Sukuk Programme for an aggregate nominal value of RM1.0 billion with tenures ranging from 5 to 10 years repayable as follows: • RM550 million due in 2024 • RM200 million due in 2026 • RM250 million due in 2029 In August 2020, the Company made its second issuance of the Sukuk Programme for an aggregate nominal value of RM700 million with a tenure of 5 years repayable in 2025. In December 2021, the Company made its third issuance of the Sukuk Programme for an aggregate nominal value of RM600 million with tenures of 6 years and 7 years. The Group utilised the proceeds from the issuance to restructure and pay off its existing financing and borrowings and for general corporate purposes. The transaction costs arising from these issuances have been back charged to Press Metal Bintulu Sdn. Bhd. as part of the loans to the subsidiary (Note 12.1). ANNUAL REPORT 2022 262
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