Press Metal Annual Report 2023

Financial Statements Financial Statements Press Metal Aluminium Holdings Berhad 256 257 Integrated Annual Report 2023 Notes to the Financial Statements Notes to the Financial Statements 16. LOANS AND BORROWINGS (CONT’D) 16.1 Bank loans (cont’d) Significant covenants In connection with the significant bank loan facilities of Press Metal Bintulu Sdn. Bhd., the Company and the subsidiary have agreed on the following significant covenants with the lenders: Press Metal Bintulu Sdn. Bhd. (Loan 10) i) The subsidiary shall maintain a maximum net debt to tangible net worth of not more than 1.50 times, net debtto-earnings before interest, taxes, depreciation and amortisation (“EBITDA”) of not more than 3.00 times and minimum DSCR of 1.25 times; ii) The consolidated financial statements of the Group shall maintain a maximum net debt to tangible net worth of not more than 1.50 times and net debt-to-EBITDA of not more than 3.50 times; and iii) The existing shareholders shall maintain their shareholdings in the subsidiary. Press Metal Aluminium Holdings Berhad (Loans 4 and 9) The consolidated financial statements of the Group shall maintain a maximum gross debt to tangible net worth of not more than 1.50 times and a minimum debt service coverage ratio (“DSCR”) of 1.25 times. 16.2 Islamic Medium-Term Notes In August 2019, the Company made a lodgement with the Securities Commission Malaysia for the establishment of Islamic Medium-Term Notes of RM5.0 billion in nominal value based on the Shariah Principle of Wakalah Bi AlIstithmar (“Sukuk Programme”), for a tenure of up to thirty (30) years. In October 2019, the Company made its first issuance of the Sukuk Programme for an aggregate nominal value of RM1.0 billion with tenures ranging from 5 to 10 years repayable as follows: • RM550 million due in 2024 • RM200 million due in 2026 • RM250 million due in 2029 In August 2020, the Company made its second issuance of the Sukuk Programme for an aggregate nominal value of RM700 million with a tenure of 5 years repayable in 2025. In December 2021, the Company made its third issuance of the Sukuk Programme for an aggregate nominal value of RM600 million with tenures of 6 years and 7 years. In September 2023, the Company made its fourth issuance of the Sukuk Programme for an aggregate nominal value of RM500 million with tenures of 5 years and 7 years. The Group utilised the proceeds from the issuance for general corporate purposes including capital expenditure, working capital requirements, investments and refinancing of existing borrowings. The transaction costs arising from these issuances have been back charged to Press Metal Bintulu Sdn. Bhd. as part of the loans to the subsidiary (Note 12.1). 16. LOANS AND BORROWINGS (CONT’D) 16.2 Islamic Medium-Term Notes (cont’d) Significant covenants i) The consolidated financial statements of the Group shall maintain a maximum Finance to Equity Ratio of not more than 1.75 times; and ii) The Company shall maintain its existing shareholdings in Press Metal Sarawak Sdn. Bhd. and Press Metal Bintulu Sdn. Bhd. (collectively known as “material subsidiaries”). The Company and/or its material subsidiaries are, subject to certain thresholds, limitations, exceptions and qualifications, limited from: • issuing guarantees; • entering into transactions with shareholders or affiliates; • creating any liens; • selling assets; • reducing of share capital; • lending or advancing any money to any other parties; • entering into partnership; • changing of proceeds utilisation; • substantially changing the nature or scope of its business; and • effecting a consolidation, merger or reorganisation. 16.3 Bankers’ acceptances Group 2023 RM’000 2022 RM’000 Guaranteed by the Company 19,493 615,459 16.4 Revolving credits Group 2023 RM’000 2022 RM’000 Guaranteed by the Company 184,043 200,956 16.5 Bank overdrafts Group 2023 RM’000 2022 RM’000 Guaranteed by the Company 7,369 5,444 Guaranteed by a director 997 2,001 8,366 7,445

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