30. IRREDEEMABLE CONVERTIBLE PREFERENCE SHARES AND PERPETUAL BOND (CONT’D.) Perpetual bond Group and Company 2022 2021 RM’000 RM’000 At 1 January 527,791 252,613 Issuance of perpetual bond 130,000 270,000 Distribution for the financial year 42,148 22,633 Distribution paid for the financial year (39,935) (17,455) At 31 December 660,004 527,791 On 8 April 2022, the Company issued a total of RM130 million in nominal value of senior ranking Perpetual Sukuk (“Sukuk Musharakah”) pursuant to a Sukuk Musharakah Programme (“Perpetual bond”) of up to RM2 billion in nominal value. The Perpetual bond is established to raise funds as and when required to be utilised for Shariah-compliant purposes which include refinancing existing financing/debt obligations (whether in whole or in part), and/or to finance working capital requirements, investments, capital expenditure and/or general corporate purposes of the Group. The salient features of the Perpetual bond were as follows: (i) the Perpetual bond is issued under the Shariah principle of Musharakah. (ii) perpetual in tenure, where the Company has a call option to redeem the Perpetual bond at the end of the 5th year and on each periodic distribution date thereafter. (iii) the Company also has the option to redeem the Perpetual bond upon the occurrence of an Accounting Event, Tax Event and/or any Stepped Up Event. (iv) the expected periodic distribution up to year 5 is 7% per annum payable semi-annually. If the Company does not exercise its option to redeem at the end of the 5th year, the periodic distribution increases by 2% per annum in year 6 and subsequently the periodic distribution increases by 1% per annum in year 7 onwards and subject to a maximum rate of 15% per annum. (v) deferred periodic distribution, if any, will be cumulative and shall be added for the purpose of calculating the Additional Periodic Distribution Amount. (vi) payment obligations on the Perpetual bond will at all times, rank ahead of the holders of Junior Obligations of the Company and rank pari passu with all other present and future unsecured, unconditional and unsubordinated obligations of the Company. (vii) Accounting Event If as a result of any changes or amendments to the Malaysian Financial Reporting Standards (“MFRS”) in Malaysia or any other accounting standards that may replace MFRS for the purposes of the Issuer’s consolidated financial statements, the Sukuk Musharakah are no longer recorded, or will no longer be recorded entirely as “equity” pursuant to the Relevant Accounting Standard, an Accounting Event shall have occurred. 251 FINANCIAL STATEMENTS & OTHER INFORMATION
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