KENANGA ANNUAL REPORT 2020

224 5 1 2 3 4 6 7 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 25. BORROWINGS Note Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Short term borrowings Secured: Revolving bank loan (a) 30,400 41,600 30,400 41,600 Unsecured: Revolving bank loans (b) 23,000 30,000 - - Subordinated notes (c) 122,000 25,000 122,000 25,000 175,400 96,600 152,400 66,600 (a) The revolving bank loan amounting to RM30.4 million (2019: RM41.6 million) bears interest of 0.5% (2019: 0.5%) per annum above cost of funds. The loan is secured by a first party legal charge over Kenanga Tower, the corporate office building of Kenanga Investment Bank Berhad. The tenure for the loan is 7 years from 24 May 2016. (b) The revolving bank loans bear interest of 1.50% to 2.00% over cost of funds (2019: 1.50% to 2.00% over cost of funds) plus cost of maintaining statutory reserve and liquidity requirements and are payable on maturity of the loans. The maximum tenure for the loans is 3 months (2019: 3 months). (c) On 27 March 2017, the Bank established a RM250 million Tier 2 Subordinated Note Programme in nominal value which has a tenure of up to thirty (30) years. The outstanding subordinated notes under this programme as at 31 December 2020 are as follows: Issue date Tranches RM’000 Rate (p.a.) Tenure 20 April 2017 1 5,000 6.25% 10 years (non-callable 5 years) 29 January 2018 2 10,000 6.60% 18 September 2018 3 10,000 6.40% 20 March 2020 4 50,000 5.25% 28 August 2020 5 47,000 4.40% 122,000