Conventional Debt Securities

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Cagamas Debt Securities

Cagamas issues debt securities to finance the purchase of housing mortgages and other consumer receivables for both conventional loans and Islamic financing.

Conventional Debt Securities

The conventional MYR debt securities typically issued under RM20 billion Islamic/Conventional Commercial Papers and RM60 billion Islamic/Conventional Medium Term Notes programmes are as follows:

  1. Fixed Rate Conventional Medium-Term Notes (CMTNs)
    CMTNs are Ringgit denominated bonds with fixed coupon rate with tenures of more than one year and are issued either at a premium, par or at a discount, with or without a coupon rate. Interest distributions of the CMTNs are normally made on half-yearly. The redemption of the CMTNs are at nominal value together with the interest due upon maturity.

    Apart from Ringgit CMTNs, Cagamas also issued CMTNs in foreign currency (EMTNs). Under the USD2.5 billion Multicurrency Medium Term Notes Programme, Cagamas Global P.L.C. may from time to time issue EMTNs in any currency (other than Ringgit Malaysia) which unconditionally and irrevocably guaranteed by Cagamas.

     

  2. Floating Rate Notes (FRNs)
    FRNs are Ringgit denominated CMTNs with tenures of more than one year with floating rate pegged to a reference rate, e.g. Kuala Lumpur Interbank Offered Rate (KLIBOR). Interest distributions of the FRNs are normally made on quarterly or half-yearly basis. The redemption of the relevant FRNs are at face value together with the interest due upon maturity.

    Apart from Ringgit FRNs, Cagamas also issued FRNs in foreign currency (FRN EMTNs). Under the USD2.5 billion Multicurrency Medium Term Notes Programme, Cagamas Global P.L.C. may from time to time issue FRN EMTNs in any currency (other than Ringgit Malaysia) which unconditionally and irrevocably guaranteed by Cagamas.

     

  3. Commercial Papers (CPs)
    CPs are Ringgit denominated short term instruments with maturities ranging from one to twelve months, issued with or without coupon, either at a discount from the face value where the relevant CPs are redeemable at their nominal value upon maturity or at par with interest is paid on a semi-annual basis or on such other periodic basis as determined by Cagamas.

     

Where permitted by the respective trust deeds, Cagamas may at any time purchase its debt securities and the repurchased debt securities shall be cancelled according to the requirements of the trust deeds.

Conventional Foreign Currency (FCY) Debt Securities

FCY Medium Term Notes (EMTNs)

The EMTNs are issued by Cagamas Global P.L.C., a wholly-owned subsidiary of Cagamas Berhad, under the USD2.5 billion Conventional Multicurrency Medium Term Note Programme (‘The Programme). Cagamas Global P.L.C. is a Special Purpose Vehicle (SPV) established to facilitate issuances under the Programme which are unconditionally and irrevocably guaranteed by Cagamas Berhad.

The instrument issued under the programme is as follows:

Fixed Rate EMTNs

The Notes are denominated in any currency (other than Ringgit Malaysia) with tenures of more than 1 year. They carry a fixed coupon rate with interest paid either half-yearly or quarterly basis. The redemption is at nominal value together with interest due upon maturity.

The Notes purchased by Cagamas Global P.L.C., Cagamas Berhad or its subsidiaries may be held, resold or surrendered for cancellation as permitted under the terms and conditions of Offering Circular.

Outstanding Cagamas Debt Securities as at 31 January 2020
Instrument Foreign Currency (mil) Malaysian Ringgit (mil)
Fixed Rate Medium Term Notes (MTNs)   16,400
Floating Rate Notes (FRNs)   100
Commercial Paper (CPs)   1,200
Fixed Rate FCY Medium Term Notes (EMTNs)    
  USD 878 1,658
  SGD 225 675
  HKD 661 342
Total   20,375