Cagamas issues Sukuk via its existing RM20 billion Islamic/Conventional Commercial Papers (ICPs/CCPs), and RM40 billion Islamic/Conventional Medium Term Notes (IMTNs/CMTNs) programmes and via its subsidiary, Cagamas Global Sukuk Berhad issues Sukuk under the USD2.5 billion Multicurrency Sukuk Issuance Programme (“Multicurrency Sukuk”) to facilitate Islamic foreign currency funding programme.
The instruments issued under the programmes as follows:
IMTNsIMTNs issued by Cagamas have tenures of more than one year and carry a profit which is determined at the point of issuance. Profit on the Sukuk is paid at half-yearly intervals. The redemption of the IMTNs is at nominal value together with profit due on maturity.
Variable Rate Sukuk (“VRNs”)VRNs are Sukuk that have tenures of more than one year and variable profit rates pegged to the KLIBOR. Profit is paid at three or six-monthly intervals. At maturity, the face value of the Sukuk is redeemed with any outstanding profit amounts due on maturity.
ICPsICPs are short term Islamic instruments issued by Cagamas with maturities ranging from one to 12 months issued at either a discount from the face value where ICPs are redeemable at their nominal value upon maturity or issued with profit paid on a semi-annual basis or on such other periodic basis as determined by Cagamas.
Cagamas may issue IMTNs and ICPs based on but not limited to the following Shariah principles:
Murabahah (via a Tawarruq arrangement)
Wakalah Bil Istithmar
Multicurrency SukukUnder the Multicurrency Sukuk, the sukuk is currently issued based on Shariah principle of Wakalah. The Multicurrency Sukuk issuance is on a fully-paid basis and at a par issue price and the method of calculating the profit rate may vary between the issue date and the maturity date of the relevant series of Multicurrency Sukuk issued.
Sukuk Wakalah Bil Istithmar
Sukuk Wakalah Bil Istithmar is a type of fixed income agency investment sukuk.
Its investment portfolio consists of debts (commodity trading) and Sharian-compliant tangible asstes which comprise either asset based financing contracts or sukuk based on ijarah or wakalah bil Istithmar principles or equity asset based on mudharabah principle at 70:30 ratio.
Sukuk Murabahah/Commodity Murabahah
Sukuk Murabaha is a deferred payment sukuk that is structured on cost plus basis.
The sukuk proceeds is used by the SPV as capital to purchase an asset and sell it to the obligator on a cost-plus-profit-margin basis.
Where permitted by the respective trust deeds, Cagamas may at any time purchase its debts securities and the repurchased debt securities shall be cancelled according to the requirements of the trust deeds and FRS139.
|Outstanding Cagamas Sukuk as at 31 December 2019|
|Instrument||Foreign Currency (mil)||Malaysian Ringgit (mil)|
|Islamic Medium Term Notes (IMTNs)||14,810|
|Variable Rate Notes (VRN)||-|
|Islamic Commercial Paper (ICPs)||905|
|Fixed Rate FCY Sukuk (EMTNs)||-|