Al-`Aqar Healthcare REIT Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS 17. ISLAMIC FINANCING The Group The Fund 2018 2017 2018 2017 RM RM RM RM Sukuk Ijarah - Islamic Medium Term Notes (“IMTNs”) - Non-current 575,000,000 - - - - Current - 573,944,572 - - Murabahah Tawarruq Term Financing-i (“Murabahah Tawarruq”) - Non-current 29,900,000 - 29,900,000 - 604,900,000 573,944,572 29,900,000 - Less: Transaction costs (1,194,870) (363,938) (216,354) - 603,705,130 573,580,634 29,683,646 - Sukuk Ijarah On 29 April 2013, the Group, through a wholly-owned-subsidiary, Al-`Aqar Capital Sdn Bhd established a Sukuk Ijarah Programme comprising IMTNs of up to RM1.0 billion in nominal value and issued IMTNs of RM655,000,000 in nominal value (“Issue 1”). The initial transaction costs incurred for the Issue 1 was RM2,373,693 with annual private debt security expenses amounting to RM301,500. On 20 July 2017, the Group made a partial early one-off redemption of RM80,000,000 in nominal value of unrated Class C IMTNs of Issue 1. The redemption was made by using the proceeds from the disposal of an investment property. On 4 May 2018, the Group redeemed the outstanding IMTNs of Issue 1 of RM575,000,000 together with the outstanding profit due on maturity and refinanced the IMTNs via an issuance of RM575,000,000 in nominal value of IMTNs (“Issue 2”). The initial transaction costs incurred for the Issue 2 was RM660,520 with annual private debt security expenses amounting to RM1,394,305. On 20 December 2018, the Group re-rated RM112,000,000 in nominal value of unrated Class C IMTNs of Issue 2. The re-rating exercise had led to an early redemption of the Class C IMTNs of Issue 2 and an additional issuance of RM75,000,000 in nominal value of Class A IMTNs of Issue 2 and RM37,000,000 in nominal value of IMTNs of Issue 2. FINANCIAL REPORTS 135 FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED)