Page 75 - Agib Bank Ltd Annual Report and IFRS Financial statements 2020

20 Held-to-maturity investment securities

2020 2019

Sukuk Al Salam 309,884 438,027

309,884 438,027

21 Investments in properties
Reconciliation of carrying Amount
2020 2019
Balance as at 1 January 274,658 274,658
st
Acquisitions/(Sales) (6,122) -
Reclassification to receivables (7,077) -

Change in fair value 23,242 -
284,701 274,658

The Bank holds some investment property as a consequence of the ongoing rationalization of its retail branch
network. Other properties have been acquired through enforcement of security over loans and advances.
Investment properties are held to earn rentals, or for capital appreciation, or both in line with IAS 40. These
properties are measured at fair value. The fair value of the investment property was determined by external,
independent valuers, having appropriate recognized professional qualifications and experience in the location
and category of the property being valued. The independent valuers provide the fair value of the investment
property portfolio every two years. The investment properties were due for revaluation this year and a gain of
D23.2 million was realized. The valuation was done by Investment Services International.

One property was sold with an agreement to repay in two instalments and the first instalment was
received during the course of the year and the second instalment was to be received in 2021 and the
outstanding balance of D7.077 million was transferred to other assets.

Total direct operating expenses of D1.462 million was incurred during the year on investment
properties that generated rental income.

22 Other Receivables
The amount of D109.8 million was the amount of cash used to purchase groundnut at the different
Seccos during the groundnut trade in December. A Murabaha Agriculture facility of D250 million
was given to GGC for the groundnut trade season. There was a tripartite agreement between GGC,
Agib Bank and Qmoney where Agib Bank and Qmoney will be at the different Seccos to purchase
groundnut on behalf of GGC and at that point, an amount of D200 million was transferred from GGC
current account to Qmoney current account. The bank provided cash payments whilst Qmoney was
paying Farmers through the Qmoney platform. We could not debit Qmoney account with us to clear
the cash that were already used as at the end of year 31 December 2020 because of issues with
st
the Qmoney new platform which was needed to reconcile the outstanding balance.

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Annual Report and IFRS Financial Statements for the year ended 31 December 2020 74