Cagamas Concludes Pricing for RM945 Million Worth of Bonds and Sukuk

Kuala Lumpur, 22 February 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM945 million; comprising RM245 million 3-month Islamic Commercial Papers (ICPs), RM300 million 3-month Conventional Commercial Papers (CCPs) and RM400 million 1-year Conventional Medium Term Notes (CMTNs). Proceeds from the issuances will be used to fund the purchase of house financing and housing loans from the financial system.

President/Chief Executive Officer of Cagamas, Datuk Chung Chee Leong said, “As optimism for an economic recovery rose due to the increased rollout of COVID-19 vaccinations coupled with more opening up of economic activities, fixed income investors turned cautious, weighing-in the downside risk stemming from ongoing uncertainties in the near term. Notwithstanding, demand for short-term papers remain well-supported as evidenced by the successful conclusion of our ICPs, CCPs, and CMTNs issuances.”

“Both ICPs and CCPs were competitively priced at the corresponding 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus 2 basis points (bps), or equivalent to 1.96% based on KLIBOR fixing on the pricing date, while the 1-year CMTNs were priced at 2.10%. The spreads were 22 bps above the corresponding Malaysia Islamic Treasury Bills and Malaysia Treasury Bills for the 3-month ICPs and CCPs papers and 35 bps above the corresponding Malaysian Government Securities for the 1-year CMTNs,” added Datuk Chung.

The new issuances bring the Company’s aggregate issuance for the year to RM1.7 billion. The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu and with all other existing unsecured obligations of the Company. They will be listed and tradable under the Scripless Securities Trading System.