27. BORROWINGS (CONTD.) b. Term loans and revolving credit S ecured term loans and revolving credit bear interests which range from 1.00% to 5.22% per annum (2019: 1.80 % to 5.48% per annum). The term loans are secured by: i. Charge over cash and fixed deposit; ii. Assignment of rights, title, interest and benefits of the customer under the Concession Agreement in respect of the followings: • Project Payment Charges • Amount payable to the Customer by the Government of Malaysia as a result of early termination • Appointment of Substituted Entity iii. Assignment of proceeds over revenue and other income generated from the project; iv. Assignment over designated accounts; v. Letter of undertaking from a subsidiary to service the monthly obligation of the customer in the event of any shortfall; and vi. Corporate guarantee from a subsidiary. c. Islamic Commercial Papers (“ICPs”) and Islamic Medium Term Notes (“IMTNs”) T he Company had established the ICPs and IMTNs under an Islamic Commercial Papers Programme and Islamic Medium Term Notes Programme respectively, which have a combined aggregate limit of up to RM1,000.0 million in nominal value and a sub-limit of RM300.0 million in nominal value for the ICP Programme under the Shariah Principle of Murabahah via a Tawarruq Arrangement. A s at 31 December 2020, the Company has issued the following: a. RM50.0 million in nominal value of ICPs with a tenure of 12 months issued on 24 April 2020; and b. RM250.0 million in nominal value of IMTNs with a tenure of 5 years issued on 26 April 2017. T he proceeds raised from the ICPs and IMTNs are to be utilised by the Company for its Shariah-compliant general corporate purposes. T he effective profit rates for ICPs and IMTNs at the reporting date are 3.40% (2019: 4.05%) and 4.85% (2019: 4.85%) respectively. UEM EDGENTA BERHAD 268 Financial Statements NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020
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