DESTINI Annual Report 2020

Term loan I The bank borrowing of AED99,750 (equivalent to RM112,224) obtained from a local bank bears interest at rate of 7.85% per annum. Term loan II The term loan of RM200,000 obtained from a local bank bears interest at rate of 10.60% per annum repayable by 180 monthly installments of RM1,552 each commencing from September 2014. The term loan is secured against facility agreement and 70% guarantee coverage by Syarikat Jaminan Pembiayaan Bhd (“SJPP”). It is also jointly and severally guaranteed by certain Directors of the Company. Term loan III The term loan is secured by way of a first legal charged on a freehold land and buildings of the Company at carrying amount of RM15,857,745. Interest charged on the facility at BLR plus 1.0% per annum. The term loan is repayable by monthly installments of RM97,934 over 10 years. Term loan IV The term loan is secured by way of a first legal charge on a freehold land and buildings of the Company at carrying amount of RM4,814,476. Interest charged on the facility at BLR plus 1.75% per annum. The term loan is repayable by monthly installments of RM32,736 over 10 years. Term loan V The term loan is secured by the charge over the land use right and leasehold property of the subsidiary in People’s Bank of China (“PRC”). The loan carries interest at 1.305% (2019: 1.305%) plus benchmark interest rates of the People’s Bank of China and is repriced at interval of 1 month for period of 12 months from September 2020 to September 2021. Term loan VI The term loanwithfloating interest rateof 2.75%over the bank’s prevailing interest rate per annum. The loan is repayable in 60 monthly installments and fully repaid in 2020. The loan is secured by: (a) Pledge over fixed deposits ; and (b) Pledge over the shares of a subsidiary of Destini Armada Pte. Ltd. Term loan VII The term loan amounted to RM50,000,000 and bears interest at rate of 1.75% per annum above the bank’s cost of funds. The term loan is repayable by 30 monthly instalments commencing from May 2017. Term loan VIII The bank borrowing-Import financing bears interest at rate of cost of fund plus 2.58% per annum and repayable by milestone payment from contract proceeds. The bank borrowing is secured by ways of: (a) Deed of assignment of contract proceeds and project account; (b) Debenture incorporating fixed and floating assets; (c) Personal guarantee by a Director and a former Director of the Company; (d) Corporate guarantee by the Company; and (e) Charge over shares and any future shares of the subsidiary. 23. Bank Borrowings (Cont’d) ANNUAL REPORT 2020 DESTINI BERHAD Notes to Financial Statements 157