2019 UEM Edgenta Annual Report

226 Notes to the Financial Statements For the year ended 31 December 2019 29. BORROWINGS (CONT’D.) The maturity profile of the loans and borrowings are as follows: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 On demand or within one year 153,507 124,460 52,090 52,190 More than 1 year and less than 2 years 57,885 41,689 - - More than 2 years and less than 5 years 283,364 318,785 249,750 249,625 More than 5 years 24,312 47,531 - - 365,561 408,005 249,750 249,625 519,068 532,465 301,840 301,815 (a) Murabahah Term Facility On 1 December 2016, the Group via its subsidiary, Edgenta (Singapore) Pte. Ltd (“ESG”). obtained Murabahah Term Facility of RM160.7 million (SGD52.4 million)(“Facility B”) to finance the acquisition of UEMS Pte. Ltd.. The profits charged on the borrowing are repayable on quarterly basis, while the principals are repayable on annual basis, for the period of 5 years, from the date of the first drawdown on 15 December 2016. The weighted average effective profit rate of facility at the reporting date was 4.22% (2018: 3.99%) per annum. The Facility is secured by: (i) Equitable mortgage over all securities and shares of ESG and its subsidiaries; (ii) Debenture creating registered fixed and floating charges over all present and future assets of ESG and its subsidiaries; (iii) Charge over the Designated Accounts of ESG; (iv) Assignment of UEMS Pte. Ltd.’s rights, title, interest and benefits under the Sales and Purchase Agreement dated 26 September 2016 (“SPA”); (v) Assignment of all financing or advances provided to ESG and its subsidiaries; and (vi) Corporate guarantee from the Company. (b) Term loans and revolving credit Secured term loans bear interests which range from 1.80% to 5.48% per annum (2018: 1.80 % to 5.48% per annum). The term loans are secured by: (i) Charge over cash and fixed deposit; (ii) Assignment of rights, title, interest and benefits of the customer under the Concession Agreement in respect of the followings: - Project Payment Charges - Amount payable to the Customer by the Government of Malaysia as a result of early termination - Appointment of Substituted Entity (iii) Assignment of proceeds over revenue and other income generated from the project; (iv) Assignment over designated accounts; (v) Letter of undertaking from a subsidiary to service the monthly obligation of the customer in the event of any shortfall; and (vi) Corporate guarantee from a subsidiary.