2019 UEM Edgenta Annual Report

226 227 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 29. BORROWINGS (CONT’D.) The maturity profile of the loans and borrowings are as follows: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 On demand or within one year 153,507 124,460 52,090 52,190 More than 1 year and less than 2 years 57,885 41,689 - - More than 2 years and less than 5 years 283,364 318,785 249,750 249,625 More than 5 years 24,312 47,531 - - 365,561 408,005 249,750 249,625 519,068 532,465 301,840 301,815 (a) Murabahah Term Facility On 1 December 2016, the Group via its subsidiary, Edgenta (Singapore) Pte. Ltd (“ESG”). obtained Murabahah Term Facility of RM160.7 million (SGD52.4 million)(“Facility B”) to finance the acquisition of UEMS Pte. Ltd.. The profits charged on the borrowing are repayable on quarterly basis, while the principals are repayable on annual basis, for the period of 5 years, from the date of the first drawdown on 15 December 2016. The weighted average effective profit rate of facility at the reporting date was 4.22% (2018: 3.99%) per annum. The Facility is secured by: (i) Equitable mortgage over all securities and shares of ESG and its subsidiaries; (ii) Debenture creating registered fixed and floating charges over all present and future assets of ESG and its subsidiaries; (iii) Charge over the Designated Accounts of ESG; (iv) Assignment of UEMS Pte. Ltd.’s rights, title, interest and benefits under the Sales and Purchase Agreement dated 26 September 2016 (“SPA”); (v) Assignment of all financing or advances provided to ESG and its subsidiaries; and (vi) Corporate guarantee from the Company. (b) Term loans and revolving credit Secured term loans bear interests which range from 1.80% to 5.48% per annum (2018: 1.80 % to 5.48% per annum). The term loans are secured by: (i) Charge over cash and fixed deposit; (ii) Assignment of rights, title, interest and benefits of the customer under the Concession Agreement in respect of the followings: - Project Payment Charges - Amount payable to the Customer by the Government of Malaysia as a result of early termination - Appointment of Substituted Entity (iii) Assignment of proceeds over revenue and other income generated from the project; (iv) Assignment over designated accounts; (v) Letter of undertaking from a subsidiary to service the monthly obligation of the customer in the event of any shortfall; and (vi) Corporate guarantee from a subsidiary. 29. BORROWINGS (CONT’D.) (c) Islamic Commercial Papers (“ICPs”) and Islamic Medium Term Notes (“IMTNs”) The Company had established the ICPs and IMTNs under an Islamic Commercial Papers Programme and Islamic Medium Term Notes Programme respectively, which have a combined aggregate limit of up to RM1,000.0 million in nominal value and a sub-limit of RM300.0 million in nominal value for the ICP Programme under the Shariah Principle of Murabahah via a Tawarruq Arrangement. As at 31 December 2019, the Company has issued the following: a) RM50.0 million in nominal value of ICPs with a tenure of 12 months issued on 26 April 2019; and b) RM250.0 million in nominal value of IMTNs with a tenure of 5 years issued on 26 April 2017. The proceeds raised from the ICPs and IMTNs are to be utilised by the Company for its Shariah-compliant general corporate purposes. The effective profit rates for ICPs and IMTNs at the reporting date are 4.05% (2018: 4.37%) and 4.85% (2018: 4.85%) respectively. (d) Syndicated banking facilities (secured) A subsidiary of the Group has Syndicated Banking Facilities which comprise revolving credits, bank guarantees and combined trade facilities. The Syndicated Banking Facilities are secured by a Debenture and a Deed of Assignment of Proceeds dated 27 December 1996 by way of the following: (i) A first fixed charge over all sums paid or may from time to time become due and payable to the subsidiary (“the Proceeds”) by the Government of Malaysia pursuant to the Concession Agreement dated 28 October 1996, all its uncalled capital, its present and future goodwill, patents, trademarks, licenses and concessions and all its present and future plant, equipment and machinery, motor vehicles and furniture and fittings; and (ii) A first floating charge over all the present and future lands undertakings and other properties and assets of the subsidiary both movable and immovable, not otherwise charged in (d)(i) above.