41 BORROWINGS (CONTINUED) The secured Islamic term loans of RM270,319,000 (2023: RM433,266,000) is secured against a leasehold land, debenture, certain bank balances of the Group and a director of subsidiary. The secured short term trade financing of RM6,010,000 (2023: RM6,178,000) is secured over certain property, plant and equipment. The secured Sukuk of RM348,884,000 (2023: RM398,348,000) is secured against a land of a subsidiary. Islamic term loans MSM Malaysia Holdings Berhad (“MSMH”), a subsidiary of the Company is required to comply with certain financial covenants i.e. consolidated net debt and financing to equity ratio, consolidated net debt and financing to earnings before interest, tax, depreciation and amortisation (“EBITDA”) ratio and consolidated finance payment cover ratio (collectively known as “financial covenants”). The financial covenants are to be complied with annually (2023: annually). On 18 December 2024, CIMB has issued a Supplemental Letter, informing MSMH that the bank has agreed to waive one of the three financial covenants i.e. consolidated net debt and financing to EBITDA ratio for the financial year ended 31 December 2024. Therefore, MSMH was not required to meet this covenant and has complied with other two covenants for the financial year ended 31 December 2024. Sukuk On 31 December 2021, the Company made the first issuance of Sukuk Murabahah of RM500 million in nominal value pursuant to the Sukuk Murabahah Programme. The Sukuk Murabahah Programme has a tenure of eight (8) years from the date of the first issue of Sukuk Murabahah under the Sukuk Murabahah Programme. The tenure of each Sukuk Murabahah is between one (1) year and up to eight (8) years and is unrated. The financing terms are from 31 December 2021 until 31 December 2029 (2023: 31 December 2021 until 31 December 2029) with profit rate ranging from 4.47% to 5.63% (2023: 5.20% to 5.41%) per annum. On 22 December 2023, the Company made the second issuance of Sukuk Murabahah of RM500 million in nominal value pursuant to the Sukuk Murabahah Programme. The Sukuk Murabahah Programme has a tenure of five (5) years from the date of the first issue of Sukuk Murabahah under the Sukuk Murabahah Programme. The tenure of each Sukuk Murabahah is between one (1) year and up to five (5) years and is unrated. The financing terms are from 22 December 2023 until 22 December 2028 with profit rate ranging from 4.83% to 5.19% per annum. On 26 June 2024, the Company made the third issuance of Sukuk Murabahah of RM300 million in nominal value pursuant to the Sukuk Murabahah Programme. The Sukuk Murabahah Programme has a tenure of five (7) years from the date of the first issue of Sukuk Murabahah under the Sukuk Murabahah Programme. The tenure of each Sukuk Murabahah is between one (1) year and up to seven (7) years and is unrated. The financing terms are from 26 June 2024 until 26 June 2031 with profit rate ranging from 4.81% to 5.34% per annum. On 4 December 2024, the Company made the fourth issuance of Sukuk Murabahah of RM200 million in nominal value pursuant to the Sukuk Murabahah Programme. The Sukuk Murabahah Programme has a tenure of five (7) years from the date of the first issue of Sukuk Murabahah under the Sukuk Murabahah Programme. The tenure of each Sukuk Murabahah is between one (1) year and up to seven (7) years and is unrated. The financing terms are from 4 December 2024 until 4 December 2031 with profit rate ranging from 4.70% to 5.20% per annum. FGV Holdings Berhad | Audited Financial Statements 2024 Notes to the Financial Statements For the financial year ended 31 December 2024 158
RkJQdWJsaXNoZXIy NDgzMzc=