2020 UEM Edgenta Annual Report

27. BORROWINGS (CONTD.) The maturity profile of the loans and borrowings are as follows: Group Company RM’000 2020 2019 2020 2019 On demand or within one year 164,450 153,507 52,101 52,090 More than 1 year and less than 2 years 260,608 57,885 249,958 – More than 2 years and less than 5 years 33,887 283,364 – 249,750 More than 5 years 24,209 24,312 – – 318,704 365,561 249,958 249,750 483,154 519,068 302,059 301,840 a. Murabahah Term Facility O n 1 December 2016, the Group via its subsidiary, Edgenta (Singapore) Pte. Ltd (“ESG”) obtained Murabahah Term Facility of RM160.7 million (SGD52.4 million) to finance the acquisition of UEMS Pte. Ltd.. T he 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. T he weighted average effective profit rate of facility at the reporting date was 2.80% (2019: 4.22%) per annum. The Facility is secured by: i. Equitable mortgage over all securities and shares of ESG and its subsidiaries; ii. D ebenture 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. A s at the reporting date, no values are ascribed on these guarantees provided by the Company for the purpose described above as the directors regard the value of the credit enhancement provided by these guarantees as minimal and the probability of default, based on historical track records of the parties receiving the guarantees are not probable. ANNUAL REPORT 2020 267 1 2 3 4 5 6 7 8