Kenanga Investment Bank Berhad Annual Report 2021 242 Our Sustainability Approach About This Report We Are Kenanga Message From Chairman and GMD 25. BORROWINGS (CONT’D.) (a) The revolving bank loan amounting to RM19.2 million (2020: RM30.4 million) bears interest of 0.5% (2020: 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 (2020: 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 (2020: 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 2021 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% 28 May 2021 6 63,500 4.48% 185,500 26. LEASE LIABILITIES Group Bank 2021 RM’000 2020 RM’000 2021 RM’000 2020 RM’000 As at 1 January 23,382 24,429 21,442 23,436 Additions 11,540 6,976 9,048 4,928 Accretion of interest 1,064 1,331 1,006 1,218 Payments (9,325) (9,354) (8,191) (8,140) Derecognition (7,832) - (7,832) - As at 31 December 18,829 23,382 15,473 21,442 The maturity analysis of lease liabilities is disclosed as below: Group Bank 2021 RM 2020 RM 2021 RM 2020 RM Within 1 year 7,121 5,248 6,180 5,048 Between one and five years 11,708 18,134 9,293 16,394 18,829 23,382 15,473 21,442 Notes to the Financial Statements 31 December 2021
RkJQdWJsaXNoZXIy NDgzMzc=