Serba Dinamik Annual Report 2019

280 2019 ANNUAL REPORT FINANCIAL STATEMENTS SERBA DINAMIK HOLDINGS BERHAD 18. LOANS AND BORROWINGS (CONTINUED) 18.1 Sukuk (Islamic) – unsecured (continued) Also, during the year, the Group via SD International Sukuk II Limited, a wholly owned indirect subsidiary of the Company, has issued and finalised a Sukuk Wakalah programme, and raised approximately USD200 million for the purpose of general working capital with tenure of 5 years and 3 months, payable semi-annually at annual profit rate of 6.99%, and with maturity on year 2025. 18.2 Islamic facilities The Group’s Islamic term loans, bank overdrafts and revolving credits facilities of RM1,034,827,512 (2018: RM314,651,000), RM2,553,913 (2018: RM3,281,000) and RM274,548,812 (2018: RM568,512,000) respectively are for Islamic facilities under Bai’ Inah and Murabahah contract. 18.3 Security The bank overdrafts, bankers’ acceptances and revolving credits facilities of the Group are secured by the following: (a) legal charges over on leasehold land and certain buildings of the Group (see Note 3.2 and 4.1). (b) secured by the facility agreement and pledged fixed deposits (see Note 7 and Note 14). The term loans of the Group are secured by the following: (a) general and supplemental facility agreement. (b) first and second legal charges over leasehold land and certain buildings of the Group (see Note 3.2 and 4.1). (c) corporate guarantee from the Company and the subsidiaries. The revolving credits (Islamic) of the Group are secured by the following: (a) secured by pledged term deposits (see Note 7 and 14); (b) corporate guarantee from the Company. 18.4 Significant covenants on loans and borrowings The Group is required to maintain a gearing ratio not exceeding 2.00 times in respect of the banking facilities granted by five licensed banks to the Group. The total outstanding borrowings of the Group with the said banks as at 31 December 2019 are RM250,505,595 (2018: RM283,698,523). The Group has not breached the covenant. N O T E S T O T H E F I N A N C I A L S TAT E M E N T S