239 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 KENANGA INVESTMENT BANK BERHAD Annual Report 2022 25. BORROWINGS Group Bank Note 2022 RM’000 2021 RM’000 2022 RM’000 2021 RM’000 Secured: Revolving bank loan (a) 8,000 19,200 8,000 19,200 Unsecured: Revolving bank loans (b) 17,500 40,000 - - Subordinated notes (c) 180,500 185,500 180,500 185,500 206,000 244,700 188,500 204,700 (a) The revolving bank loan amounting to RM8.0 million (2021: RM19.2 million) bears interest of 0.5% (2021: 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 (2021: 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 (2021: 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 2022 are as follows: Issue date Tranches RM’000 Rate (p.a.) Tenure 29 January 2018 2 10,000 6.60% 10 years (non-callable 5 years) 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% 180,500
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