2020 UEM Edgenta Annual Report

27. BORROWINGS (CONTD.) b. Term loans and revolving credit S ecured term loans and revolving credit bear interests which range from 1.00% to 5.22% per annum (2019: 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. 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. A s at 31 December 2020, the Company has issued the following: a. RM50.0 million in nominal value of ICPs with a tenure of 12 months issued on 24 April 2020; and b. RM250.0 million in nominal value of IMTNs with a tenure of 5 years issued on 26 April 2017. T he proceeds raised from the ICPs and IMTNs are to be utilised by the Company for its Shariah-compliant general corporate purposes. T he effective profit rates for ICPs and IMTNs at the reporting date are 3.40% (2019: 4.05%) and 4.85% (2019: 4.85%) respectively. UEM EDGENTA BERHAD 268 Financial Statements NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020