Fraser & Neave Holdings Bhd Annual Report 2021

17. LOANS AND BORROWINGS Group Currency 2021 RM’000 2020 RM’000 Current IMTN – unsecured Malaysia Ringgit (“MYR”) 1,000 – Term loan – unsecured Thai Baht (“THB”) – 91,868 1,000 91,868 ISLAMIC COMMERCIAL PAPERS #“ICP”$ AND ISLAMIC MEDIUM TERM NOTES #“IMTN”$ PROGRAMMES OF RM3,000,000,000 On 7 May 2021, F&N Capital Sdn Bhd (“the Issuer”), a wholly owned subsidiary of F&NHB had established an Islamic Commercial Papers (“ICP”) Programme (“ICP Programme”) and an Islamic Medium Term Notes (“IMTN”) Programme (“IMTN Programme”) both based on the Shariah principle of Murabahah (via a Tawarruq arrangement) with a combined limit of up to RM3,000,000,000 in nominal value and guaranteed by the Company. The ICP Programme has a tenure of seven (7) years from the first issue date whilst the tenure of the IMTN Programme is perpetual. The proceeds from the ICP Programme and the IMTN Programme shall be advanced to companies within the F&NHB Group for Shariah- compliant general corporate purposes of the Group and the refinancing of any existing borrowings/financings/corporate bonds/Sukuk issues and/or future Sukuk issues/Shariah-compliant financings of the Group. The utilisation of proceeds of these programmes shall at all times be for Shariah-compliant purposes. To activate the Programmes, the Issuer had on 30 August 2021 issued IMTN of RM1,000,000 with a tenure of one (1) year from the issue date and ICP of RM1,000,000 with a tenure of one (1) month from the issue date. The ICP with profit rate of 2.20% per annum was fully repaid during the financial year. As at 30 September 2021, the outstanding IMTN with profit rate of 2.45% per annum amounted to RM1,000,000. As at 30 September 2021, the unutilised ICP Programme and IMTN Programme available for use amounted to RM2,999,000,000. COMMERCIAL PAPERS #“CP”$ PROGRAMME AND MEDIUM TERM NOTES #“MTN”$ PROGRAMME OF RM1,500,000,000 On 11 June 2021, the Issuer had terminated the MTN Programme, which was expected to expire on 26 September 2028. The CP Programme had expired on 14 October 2020. TERM LOAN OF THB1,000,000,000 On 6 June 2018, a subsidiary of the Company, F&N Dairies (Thailand) Limited was granted term loan of THB1,000,000,000 with the tenure of three (3) years from the issued date and interest rate of 2.44% per annum. The term loan has been fully repaid during the financial year. As at 30 September 2020, the outstanding balance for the term loan is THB700,000,000. 216 NOTES TO THE F INANCIAL STATEMENTS