Cagamas issues RM1.1b in bonds and sukuk

KUALA LUMPUR: Cagamas Bhd has issued RM1.1 billion debt securities to fund mortgage loans and Islamic house financing from the financial system.

The issuances comprise RM300 million three-year conventional medium-term notes (CMTNs), RM500 million three-month conventional commercial papers (CCPs) and RM300 million three-year Islamic medium-term notes (IMTNs).

President and chief executive officer Datuk Chung Chee Leong said the conclusion of its 24th and 25th issuance exercises for this year brings the total issuances for year-to-date to RM9.04 billion comprising RM6.04 billion conventional bonds and RM3.00 billion sukuk.

In a statement today, he said its CMTNs and IMTNs are competitively priced at final coupon or profit rate of 3.38 per cent with 25 to 33 basis points (bps) over Malaysian Government Securities (MGS)/MG Investment Issues (MGII) and five bps above government-guaranteed (GG) bonds and sukuk of equivalent tenure.

“Riding on the strong demand for Cagamas papers, the company has also priced RM500 million three-month CCPs at a competitive pricing level of the corresponding three-month Kuala Lumpur Interbank Offered Rate benchmark rate or equivalent to 3.35 per cent on pricing date”, he said. -Bernama