17. Islamic financing Group Fund 2024 2023 2024 2023 RM RM RM RM Non current Term Financing-i (“TF-i”) (Note (a)) 118,000,000 - 118,000,000 - Business Financing-i (“FF-i”) (Note (b)) 70,000,000 70,000,000 70,000,000 70,000,000 Sukuk Ijarah (Note (c)) 409,500,000 455,000,000 - - 597,500,000 525,000,000 188,000,000 70,000,000 Less: Transaction cost (3,221,966) (3,318,926) (473,116) (478,659) 594,278,034 521,681,074 187,526,884 69,521,341 Current Sukuk Ijarah (Note (c)) 45,500,000 - - - Term Financing-i (“TF-i”) (Note (a)) - 118,000,000 - 118,000,000 45,500,000 118,000,000 - 118,000,000 Less: Transaction cost - (65,675) - (65,675) 45,500,000 117,934,325 - 117,934,325 Total Islamic financing 639,778,034 639,615,399 187,526,884 187,455,666 (a) TF-i The TF-i profit is payable over a period of 60 months from the date of first disbursement. 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 duration of the TF-i. The average effective profit rate for the TF-i is 5.45% (2023: 5.07%) per annum. The principal amount is to be expected to be paid in March 2024. The Bank, via letter dated 4 March 2024 agreed to extend the tenure for another 2 years to March 2026. The TF-i has a significant covenant in which the subsidiary shall at all times, maintain the following criteria: (i) The financing payment cover ratio (“FPCR”) of not less than 1.25 times; (ii) Total debts and financing over total assets value of not more than 50%; and (iii) Minimum security cover of 1.25 times. The financing is secured by the investment properties amounting to RM169,480,000 (2023: RM168,780,000) as disclosed in Note 10. Notes to the Financial Statements - 31 December 2024 226 AL-SALĀM REIT ANNUAL REPORT 2024
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