17. Islamic financing (cont'd.) (b) BF-i The BF-i profit is payable over a period of 72 months from the date of first disbursement. The effective profit rate for the BF-i will be based on COF which is based on the Bank’s COF + 0.60% per annum for the duration of the BF-i. The average effective profit rate for the BF-i is 3.56% (2020: nil) per annum. The principal amount is to be expected to be paid in September 2026. The BF-i has a significant covenant in which the subsidiary shall at all times, maintain the following criteria: (i) The financing payment cover ratio (“FSCR”) 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 1.30 times. The financing is secured by the investment properties amounting to RM96,900,000 as per disclosed in Note 10. (c) Sukuk Ijarah On 24 August 2018, a subsidiary of the Group, ALSREIT Capital Sdn Bhd established a Sukuk Ijarah Programme comprising Islamic Medium Term Notes (“IMTN”) of up to RM1,500,000,000. On 24 August 2020, the Group issued RM520,000,000 in nominal value of IMTNs (“Issue 2”) which bears profit rate of 3.72% to 3.91% (2020: 3.72% to 3.90%) per annum. The Sukuk Ijarah Programme has a significant covenant in which the subsidiary, Al-Salām REIT and its subsidiary shall at all times, maintain the following financial covenants: (i) Finance Service Cover Ratio ("FSCR") at Issuer level of not less than 1.5 times; (ii) FSCR at Al-Salām REIT level of not less than 1.5 times; (iii) Minimum Security Cover Ratio of at least 2.0; and (iv) such other financial covenant(s) as may be determined by the Rating Agency and to be mutually agreed to by ALSREIT Capital Sdn Bhd. The financing is secured by the investment properties amounting to RM911,878,522 (2020: RM1,021,270,689) as per disclosed in Note 10. Revolving credit: As of 31 December 2021, the Fund unutilised revolving credit facilities amounting to RM10,000,000 (2020: RM10,000,000) which is granted from a financial institution. The said facility of is secured by investment properties of the subsidiary amounting to RM15,800,000 (2020: RM16,000,000) as mentioned in Note 10. Changes in liabilities arising from financing activities: Non-current Current Total RM RM RM Group At 1 January 2021 581,855,901 52,000,000 633,855,901 Cash flows 52,235,941 (52,000,000) 235,941 Charged to profit or loss 1,565,096 - 1,565,096 At 31 December 2021 635,656,938 - 635,656,938 At 1 January 2020 86,000,816 162,044,847 248,045,663 Cash flows 546,202,122 (162,785,000) 383,417,122 Charged to profit or loss 1,565,096 828,020 2,393,116 Reclassification (51,912,133) 51,912,133 - At 31 December 2020 581,855,901 52,000,000 633,855,901 A L - S A L Ā M R E I T A N N U A L R E P O R T 2 0 2 1 170 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONT’D)
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