Cagamas issues RM1.2b bonds, sukuk, wraps up 2019 with RM10.2b issuances

KUALA LUMPUR: Cagamas Bhd, the National Mortgage Corporation of Malaysia, has announced the combined issuance of RM1.2 billion bonds and sukuk, comprising RM600 million Islamic commercial papers (ICPs), RM200 million conventional commercial papers (CCPs) and RM400 million Islamic medium term notes (IMTNs).

The proceeds from ICPs, CCPs and IMTNs issuance will be used to fund the purchases of mortgage loans and Islamic house financing from the domestic financial system.

“We are pleased to conclude the year with yet another successful issuances representing the company’s 26th issuance exercise which brings the aggregate issuances for the year to RM10.2 billion, marking the company’s third consecutive year surpassing RM10 billion worth of issuances,” said Cagamas president/CEO Datuk Chung Chee Leong (pix) in a statement.

The six-month CCPs/ICPs was competitively priced at 3.25%, 20 bps above six-month Malaysia treasury bills and 17 bps above Malaysian Islamic treasury bills, while the one-year IMTNs was competitively priced at 3.29%, 26 bps above the corresponding Malaysia government investment issue.

“It has been an eventful year for both domestic and global markets. The company remains optimistic as it continues to fulfill its mandate as a financial intermediary between the capital market and the Malaysian housing sector,” added Chung.

The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking pari passu among themselves and with all other existing unsecured obligations of the company. They will be listed and tradable under the Scripless Securities Trading System.

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