NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 239 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION 26. BORROWINGS Note Group Bank 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Secured: Revolving bank loan (a) - 8,000 - 8,000 Unsecured: Revolving bank loans (b) - 17,500 - - Subordinated notes (c) 180,500 180,500 180,500 180,500 180,500 206,000 180,500 188,500 (a) The revolving bank loan has been fully repaid on 29 September 2023 (2022: RM8.0 million) and bore interest of 0.5% per annum above cost of funds. The loan was secured by a first party legal charge over Kenanga Tower, the corporate office building of Kenanga Investment Bank Berhad. The tenure for the loan was seven (7) years from 24 May 2016. (b) For financial year ended 2022, the revolving bank loans bore interest of 1.50% to 2.00% over cost of funds plus cost of maintaining statutory reserve and liquidity requirements and were payable on maturity of the loans. The maximum tenure for the loans was three (3) months. The revolving bank loans were fully repaid on 8 November 2023. (c) On 27 March 2017, the Bank established a RM250.0 million Tier 2 Subordinated Note Programme in nominal value which has a tenure of up to thirty (30) years. The outstanding Subordinated Notes under this programme as at 31 December 2023 are as follows: Issue date Tranches RM’000 Rate (p.a.) Tenure 20 March 2020 4 50,000 5.25% 10 years (non-callable 5 years) 28 August 2020 5 47,000 4.40% 28 May 2021 6 63,500 4.48% 10 February 2023 7 20,000 5.60% 180,500 The Bank has fully redeemed the tranche 2 and tranche 3 of its Subordinated Notes with nominal value of RM10.0 million each on 31 July 2023 and 18 September 2023, respectively.
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