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Notes to the financial statements
31 December 2012
(continued)
Annual Report 2012 KPJ Healthcare Berhad
27. Borrowings (continued)
Borrowings for the Group and the Company are denominated in Ringgit Malaysia.
The borrowings are secured by:
(a) fixed charge on certain landed properties of the Group (Note 13);
(b) first fixed charge on certain assets of the Group by way of debenture;
(c) letter of awareness, letter of comfort and letter of subordinates from Johor Corporation;
(d) a negative pledge over some of the fixed and floating assets of the Group;
(e) fixed first and floating charge over some movable and immovable assets of the Group; and
(f) finance leases are effectively secured as the rights to the leased asset revert to the lessor in the event of default.
Islamic Commercial Papers/Islamic Medium Term Notes (“ICP/IMTN”)
The ICP/IMTN is parked at Point Zone Sdn Bhd (“PZSB”), a special purpose vehicle incorporated to raise funds for the Group.
On 3 May 2011, the Company refinanced its existing Commercial Papers/Medium Term Notes (“CP/MTN”) with the first issuance of ICP/IMTN up to RM500
million from RM250 million.
Salient features of the ICP/IMTN are as follows:
(1) Total outstanding nominal value of ICPs and IMTNs (collectively known as “Notes”) shall not exceed RM500 million.
(2) The tenure of the Facility is up to 7 years from date of the first issuance of any Notes (3 May 2011) under the Facility.
(3) ICP has a maturity of between 1,2,3,6 and 7 months and are mandatorily redeemed at nominal value upon maturity date. The ICP is issued at a discount
to its value.
(4) IMTN has a maturity of 1 year but not more than 7 years and on condition that the IMTN matures prior to the expiry of the tenure of the Facility. The IMTN
shall be mandatorily redeemed at nominal value upon maturity date. The interest for the IMTN shall be payable semi-annually upon maturity of IMTN.
(5) The ICP/IMTN Facility is issued on a clean basis and shall be fully repaid at the end of the tenure of the Facility.
As at 31 December 2012, the unutilised amount of ICP/IMTN amounted to RM151.0 million (2011: RM251.0 million).
The ICP/IMTN is pledged against the Group’s investment in its associate, Al-’Aqar Healthcare REIT amounting to RM234,963,962 as security.
The ICP/IMTN Facility was secured by Memorandum of charge over designated account identified as Finance Service Reserve Account (“FSRA”) and
Corporate Guarantee Agreement was issued by the Company in favour of the appointed trustee.
Functional
Interest
Effective
Total
currency/
rate
interest
carrying
Maturity profile
currency
rate at the
amount
<1 year 1-2 years 2-3 years 3-4 years 4-5 years > 5 years
exposure
end of the
RM’000
RM’000
RM’000
RM’000
RM’000
RM’000 RM’000
period
%
per annum
2012
Group
Term loans (secured)
RM/RM
Floating
3.28
18,473
13,718
1,562
640
678
720
1,155
Islamic commercial
papers (secured)
RM/RM
Floating
3.70 349,000
-
-
-
-
- 349,000
Revolving credits
(unsecured)
- Conventional
RM/RM
Floating
3.73
70,000
70,000
-
-
-
-
-
- Al-Amin
RM/RM
Floating
4.00 105,900 105,900
-
-
-
-
-
Islamic facilities
- Hiwalah term loan
(secured)
RM/RM
Floating
6.32
17,450
6,145
885
625
653
682
8,460
- Al-Ijarah
RM/RM
Floating
2.95
16,932
4,344
4,591
3,286
3,152
1,559
-
Hire purchase and finance
lease liabilities
- Conventional
RM/RM
Floating
3.55
10,417
4,590
2,575
2,293
959
-
-
- Bai Al-Inah
RM/RM
Floating
2.72
2,878
883
936
935
124
-
-
Bank overdrafts
(unsecured)
RM/RM
Floating
7.56
1,046
1,046
-
-
-
-
-
592,096 206,626
10,549
7,779
5,566
2,961 358,615