Kuala Lumpur, 30 September 2020 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the issuance of its RM400 million 3-month Conventional Commercial Papers (CCPs). Proceeds from the
issuances will be used to fund the purchase of housing loans from the financial system.
“Global risk-off market sentiments prevails due to lingering concerns over a resurgence of COVID-19 cases which may potentially hamper further global economic growth. On the domestic front, market players continue to search for signs of improvement in the local economy given recent political developments and the potential impact arising from the loan moratorium ending although this is expected to be muted through proactive measures taken by Bank Negara Malaysia and financial institutions via provision of targeted moratorium extension and loan repayment flexibility to affected individuals and businesses,” said President/Chief Executive Officer of Cagamas Berhad, Datuk Chung Chee Leong.
“Despite market remaining cautious over uncertainties ahead, the Company successfully secured strong interest for its short-term papers and priced its CCPs issuance competitively at 17 bps above respective Malaysian Treasury Bills,” added Datuk Chung.
The transaction marked the Company’s fourteenth issuance exercise for the year and brings the year-to-date issuance amount to RM5.62 billion.
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.