AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 141 17. ISLAMIC FINANCING The Group The Fund 2018 2018 2017 RM RM RM Current: Commodity Murabahah Revolving Credit-i - - 3,100,000 Non-current: Commodity Murabahah Term Financing-i 350,000,000 350,000,000 350,000,000 Sukuk Ijarah 162,785,000 - - Transaction costs (3,257,404) (1,407,021) (2,301,033) 509,527,596 348,592,979 347,698,967 Total Islamic Financing 509,527,596 348,592,979 350,798,967 Current Islamic inancing - current facility is a Commodity Murabahah Revolving Credit-I (“CMRC-i”) dated 14 June 2017 where the facility amount given up to the aggregate principal limit of RM10 million from RHB Islamic Bank Berhad to part inance the general working capital requirements of the Fund. The efective rate for the CMRC-i will be based on Costs of Funds (“COF”) + 1.50% per annum. Non-current Islamic inancing - non-current facility is a Commodity Murabahah Term Financing-i (“CMTF-i”) dated 14 April 2015 amounting to RM350.0 million from RHB Islamic Bank Berhad and Maybank Islamic Berhad (collectively “the Banks”) to part inance the acquisition of the investment properties of the Fund in 2015. The nominal value of the CMTF-i comprised Tranche 1 and Tranche 2, amounting to RM136.04 million and RM213.96 million, respectively. The CMTF-i proit is payable over a period of 60 months from the date of irst disbursement with full repayment of principal sum on the 60th month. The efective proit rate for the CMTF-i will be based on COF + 1.35% per annum for the irst 16 months, COF + 1.40% per annum for the next 8 months and COF + 1.50% per annum for the remaining duration of the CMTF-i. The COF is based on each respective Banks’ COF. The average efective proit rate for the CMTF-i is 5.38% (2017: 4.99%). The total transaction costs of RM4,470,060 incurred in 2015 were debited against the amount of the Islamic inancing facility on drawdown date comprising, amongst others, processing and stamping fees, legal advisory fees and other establishment fees. On 24 August 2018, ALSREIT Capital Sdn Bhd established a Sukuk Ijarah Programme comprising Islamic Medium Term Notes (“IMTN”) of up to RM1.5 billion in nominal value and issued RM162,785,000 in nominal value of IMTNs (“Issue 1”) with transaction cost amounting RM1,850,383. The Islamic inancing facility is secured against investment properties totaling RM1,062,699,000 (2017: RM715,200,000) as mentioned in Note 11.