UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 265 264 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 27. BORROWINGS (CONTD.) (b) 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. The tenure for ICPs and IMTNs are at 7 and 30 years, respectively from the date of the first issue. 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. The proceeds raised from the ICPs and IMTNs are to be utilised by the Company for its Shariah-compliant general corporate purposes. On 23 April 2021, the Company has redeemed its outstanding ICPs amounting to RM50.0 million in nominal value which was issued under the ICP Programme on 24 April 2020 and has matured on 23 April 2021. The effective profit rates for IMTNs at the reporting date is 4.85% (2020: 4.85%) respectively. In the previous financial year, the effective profit rate for ICP was 3.40%. As at 31 December 2021, the Group and Company have reclassified the existing IMTNs amounting RM250.0 million which will mature on 26 April 2022 from non-current liabilities to current liabilities. As stipulated in the IMTNs agreement dated 29 March 2017, the Company may submit an issue request to the facility agent, whereby the Company can select the maturity period provided that the tenure for the IMTNs shall not extend beyond the IMTN Programme tenure of 30 years from the date of first issue, which was on 26 April 2017, upon meeting all the condition precedents. As at 31 December 2021, the remaining tenure of the IMTN Programme is 26 years. The Company has implemented its plan to redeem and reissue the IMTNs to extend the tenure of the current IMTNs for another 5 years or a period deemed fit. The Company expects to successfully complete and meet all the conditions precedents to redeem and reissue the IMTNs prior to the maturity date of 26 April 2022. (c) Revolving credit Unsecured revolving credit of the Company and the Group bear interest of 2.45% (2020: nil). Secured revolving credit of the Group bears interest rate of 1.48% (2020: 1.78%) and are secured by a charge over cash and deposits of a subsidiary. 27. BORROWINGS (CONTD.) (d) Syndicated Banking Facilities 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. (e) 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) 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. In the previous financial year, the weighted average effective profit rate of facility at the reporting date was 2.80%. The Facility was 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 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. As at 31 December 2021, the Facility has been fully repaid.
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