Cagamas Caps Eventful 2020 with Total Issuances of RM11.7 billion of Bonds and Sukuk

Kuala Lumpur, 21 December 2020 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM450 million, comprising RM50 million 2-year Islamic Medium Term Notes (IMTNs) and RM400 million 3-month Conventional Commercial Papers (CCPs). Proceeds from the issuances will be used to fund the purchase of house financing and housing loans from the financial system.

“We are pleased to conclude the year with yet another successful issuance, representing the Company’s 22nd issuance exercise which brings the aggregate issuances for the year to RM11.7 billion. This marks the Company’s fourth consecutive year surpassing RM10 billion worth of issuances,” said Datuk Chung Chee Leong, President/Chief Executive Officer of Cagamas.

“It has been an eventful year with many unprecedented twists and turns. Economic turmoil associated with the COVID-19 pandemic has had a wide-ranging and severe impact on financial markets globally. Domestically, the Malaysian financial market remains resilient and continues to function efficiently despite the challenging global economic environment,” added Datuk Chung.

“The Company remains vigilant during this period and will strive to navigate the impact of the pandemic through many efforts of reinvention, accelerating digital transformation and implementing various agile operating procedures to mitigate disruptions from the pandemic. We remain committed in our continuous efforts to fulfill our mandate as a financial intermediary between the capital market and the Malaysian housing sector,” said Datuk Chung.

The IMTNs was priced at spread of 41 bps above the corresponding Malaysia Government Investment Issues (MGII), while the CCPs were priced at the corresponding 3-month KLIBOR benchmark rate plus 2 bps or equivalent to 1.96% based on KLIBOR fixing on the pricing date, represented 26 bps above the Malaysian Treasury Bills (MTB).

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.