FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 305 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 44 BORROWINGS (CONTINUED) Effective finance rates for borrowings are as follows: (continued) Group Company Finance rate Effective finance rate at date of statement of financial position per annum % Finance rate Effective finance rate at date of statement of financial position per annum % 2015 Islamic short term trade financing Fixed 2.19 - 2.82 - - Short term trade financing Fixed 5.60 - 5.61 - - Islamic term loans Fixed 6.00 - - Term loans Floating 6.19 - 6.81 - - Finance lease liabilities Fixed 4.68 - 7.21 - - The secured term loans consists of the followings: (i) RM Nil (2015: RM253,049,000) Medium Term Notes (MTN) secured over leasehold land, fixed and floating charges over certain assets of the Group and a corporate guarantee provided by a subsidiary. (ii) RM1,026,000 (2015: RM165,601,000) term loans repayable over periods ranging between six to seven years commencing from 2015 to 2017 up to 2019 to 2022 and is secured over certain leasehold lands of the Group. (iii) RM189,867,000 (2015: RM nil) Islamic term loan is secured against a leasehold land, debenture and certain bank balances of the Group. The secured short term trade financing consists of the followings: (i) RM Nil (2015: RM258,750,000) Islamic short term trade financing secured over fixed deposits. (ii) RM41,694,000 (2015: RM161,276,000) short term trade financing is secured over certain property, plant and equipment, benefits of an insurance covering finished goods, and guaranteed by some of the directors and/or shareholders of certain subsidiary companies.