AL-SALAM REIT ANNUAL REPORT 2019

AL-SALĀM REIT • 135 ANNUAL REPORT 2019 For The Financial Year Ended 31 December 2019 (Cont’d) The Group The Fund 2019 2018 2019 2018 RM RM RM RM Add : Islamic financing (Note 17) 597,532,653 509,527,596 435,487,807 348,592,979 Amounts owing to related companies 513,948 1,080,530 513,948 1,080,530 Amounts owing to a subsidiary - - 160,303,801 159,317,928 598,046,601 510,608,126 596,305,556 508,991,437 Total financial liabilities carried at amortised cost 625,101,851 536,234,040 622,459,174 533,704,169 Amounts owing to related companies, which arose mainly from management fee, collections and payments paid on behalf of the Fund, are unsecured, interest-free and repayable on demand. The transactions with related companies are disclosed in Note 20. 17. ISLAMIC FINANCING Note The Group The Fund 2019 2018 2019 2018 RM RM RM RM Non-current: Term Financing-i (a) 87,026,400 - 87,026,400 - Commodity Murabahah Term Financing-i (b) - 350,000,000 - 350,000,000 Sukuk Ijarah (c) - 162,785,000 - - 87,026,400 512,785,000 87,026,400 350,000,000 Less: Transaction costs (1,025,584) (3,257,404) (1,025,584) (1,407,021) 86,000,816 509,527,596 86,000,816 348,592,979 Current: Commodity Murabahah Term Financing-i (b) 350,000,000 - 350,000,000 - Sukuk Ijarah (c) 162,785,000 - - - 512,785,000 - 350,000,000 - Less: Transaction costs (1,253,163) - (513,009) - 511,531,837 - 349,486,991 - Total Islamic financing 597,532,653 509,527,596 435,487,807 348,592,979 (a) Term Financing-i On 27 February 2019, the Fund obtained the Term Financing ("TF-i") of up to RM118 million from Commerce International Merchant Bankers Berhad (“CIMB”) to finance the proposed acquisition of 22 QSR properties. On 19 March 2019, the Fund drawdown RM87.03 million to complete the acquisition of the said 17 properties. The TF-i profit is payable over a period of 60 months from the date of first disbursement with full repayment of principal sum on the 60th month. The effective profit rate for the TF-i will be based on COF which is based on the Bank’s COF + 1.45% per annum for the whole duration of the TF-i. The average effective profit rate for the TF-i is 5.15% (2018: Nil%). The total transaction costs of RM1,206,570 incurred during the year were debited against the amount of the Term Financing- i facility on drawdown date comprising, amongst others, processing and stamping fees, legal advisory fees and other establishment fees. Notes To The Financial Statements