230 AL-SALĀM REIT NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 ANNUAL REPORT 2023 17. Islamic financing (cont’d.) (b) BF-i (cont’d.) The BF-i has a significant covenant in which the subsidiary shall at all times, maintain the following criteria: (i) The financing payment cover ratio (“FSCR”) of not less than 1.25 times; (ii) Total debts and financing over total assets value of not more than 50%; and (iii) Minimum security cover of 1.30 times. The financing is secured by the investment properties amounting to RM105,800,000 (2022: RM102,700,000) as per disclosed in Note 10. (c) Sukuk Ijarah The company established a Sukuk Ijarah Programme comprising IMTN of up to RM1,500,000,000 in nominal value. On 24 August 2020, the Company issued RM520,000,000 in nominal value of IMTNs ("Issue 2") which bear profit rate of 4.83% to 5.60% (2022: 3.75% to 5.09%) per annum. The Company redeemed RM69,000,000 and RM451,000,000 in nominal value of IMTNs ("Issue 2") on 24 September 2021 and 24 August 2023 respectively. On 24 August 2023, the Company issued RM455,000,000 in nominal value of IMTNs (“Issue 3”) which bears profit rate of 6.03% to 6.25% per annum. The principal amount is to be expected to be paid in 24 August 2026. The Sukuk Ijarah Programme has a significant covenant in which the subsidiary, Al- Salām REIT and its subsidiary shall at all times, maintain the following financial covenants: (i) Finance Service Cover Ratio ("FSCR") at Issuer level of not less than 1.5 times; (ii) FSCR at Al-Salām REIT level of not less than 1.5 times; (iii) Minimum Security Cover Ratio of at least 2.0; and (iv) such other financial covenant(s) as may be determined by the Rating Agency and to be mutually agreed to by ALSREIT Capital Sdn Bhd. The financing is secured by the investment properties amounting to RM946,133,706 (2022: RM939,103,346) as per disclosed in Note 10. Revolving credit: As of 31 December 2023, the Fund unutilised revolving credit facilities amounting to RM10,000,000 (2022: RM10,000,000) which is granted from a financial institution. The said facility of is secured by investment properties of the subsidiary amounting to RM18,300,000 (2022: RM17,300,000) as mentioned in Note 10.
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