195 ANNUAL REPORT 2022 17. Islamic financing (cont’d.) (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 Company issued RM520,000,000 in nominal value of IMTNs (“Issue 2”) which bears profit rate of 3.75% to 5.09% (2021: 3.72% to 3.91%) per annum. The Sukuk Ijarah Programme has a significant covenant in which 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 RM939,103,346 (2021: RM911,878,522) as per disclosed in Note 10. The Manager believes that the Group will meet their short term obligation as and when they fall due on the basis that the Group will be able to refinance their borrowings when it matures. As at the reporting date, the Group received proposal fron financial institutions on the refinancing plan. As at the date of the financial statements, the Group is assessing the indicative issue term sheet and will finalise the refinancing plan by the maturity date in August 2023. Taking into consideration the viability of the refinancing plan, the Group is confident in materialising its refinancing plan. Accordingly, the Manager is of the opinion going concern basis used in the preparation of financial statements is appropriate. Revolving credit: As of 31 December 2022, the Fund unutilised revolving credit facilities amounting to RM10,000,000 (2021: RM10,000,000) which is granted from a financial institution. The said facility of is secured by investment properties of the Fund amounting to RM17,300,000 (2021: RM15,800,000) as mentioned in Note 10. NOTES TO THE FINANCIAL STATEMENTS 31 December 2022 (cont’d.)
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