NOTES TO THE FINANCIAL STATEMENTS Registration No. 200301030845 (633265-K) - 110 - 23. Bank Borrowings (Cont’d) 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. Term loan IX The term loan with fixed interest rate of 3.50% to 5.00% per annum. The loan is repayable in 60 monthly installment and fully repaid in 2025. The loan is secured by: (a) Corporate guarantee by holding company; (b) Charge on all sums in current account; (c) Charge over receivables; and (d) Personal guarantee by a Director. Bank overdraft Bank overdraft is secured by the following: (a) Fixed deposit pledged to licensed banks; and (b) Jointly and severally guarantee by certain Directors. Invoice Financing Invoice financing is repayable within 150 to 180 days (2020: 150 to 180 days). The facilities are secured by corporate guarantee from ultimate holding company and personal guarantee of a director Range of interest rates during the current and prior financial year is as follows: 2021 2020 2021 2020 % % % % Bank overdrafts 5.10 - 8.25 5.10 - 8.25 - - Invoice financing 1.00 1.00 - - Term loans 3.50 - 12.90 3.50 - 12.90 6.95 6.95 Group Company 187 ANNUAL REPORT 2021 • DESTINI BERHAD
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