Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 102 21. Loans and borrowings (continued) (a) Sukuk (Islamic) – unsecured (continued) On 28 October 2020, the Group via SD International Sukuk Limited and SD International Sukuk II Limited has completed its undertaking on optional redemption on the Trust Certificates from the holder of USD300.0 million Trust Certificates due 2025 (“Series 1 Certificates”) and USD200.0 million Trust Certificates due 2025 (“Series 2 Certificates”) for cash based on the terms and conditions contained in the tender offer memorandum dated 9 October 2020. The Group has redeemed USD77.8 million Series 1 Certificates and USD19.9 million from Series 2 Certificates. As such, the outstanding balance for the Trust Certificates are USD222.2 million for Series 1 Certificates and USD180.1 million for Series 2 Certificates. (b) Islamic facilities The Group’s Islamic term loans, bank overdrafts and revolving credits facilities of RM1,904,397,962 (2019: RM1,034,827,512), RM4,472,104 (2019: RM2,553,913) and RM277,077,692 (2019: RM274,548,812) respectively are for Islamic facilities under Bai’ Inah and Murabahah contract. (c) Security The bank overdrafts, bankers’ acceptances and revolving credit facilities of the Group are secured by the following: i. legal charges over on freehold lands, leasehold lands and certain buildings of the Group (see Note 6 and 7). ii. secured by the facility agreements and pledged fixed deposits (See Note 10 and Note 17). The term loans of the Group are secured by the following: i. general and supplemental facilities agreement. ii. first and second legal charges over freehold lands, leasehold lands and certain buildings of the Group (see Note 6 and 7). iii. corporate guarantee from the Company and the subsidiaries. The revolving credits (Islamic) of the Group are secured by the following: i. secured by pledged term deposits (See Note 10 and Note 17). ii. corporate guarantee from the Company. (d) Significant covenants on loans and borrowings The Group is required to maintain a gearing ratio not exceeding 2.00 times in respect of the banking facilities granted by five licensed banks to the Group. The total outstanding borrowings of the Group with the said banks as at 30 June 2021 is RM2,135,330,214 (2019: RM250,505,595). The Group did not breached the covenants during and as at the end of the financial period.