Kuala Lumpur, 20 January 2020 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the issuance of a RM200 million 3-month Conventional Commercial Papers (CCPs) - its first for the year. The issuance was printed from its RM20 billion Islamic and Conventional Commercial Paper Programme. Proceeds from the issuance will be used to fund the purchase of housing loans from the domestic financial system.
“The new year saw improved investors sentiment on the back of growing optimism from the trade deal between the United States (US) and China. Strengthening of the Malaysian Ringgit (MYR) and strong foreign portfolio inflows, anchored by a relatively dovish US Federal Reserve as well as the continued global low-rate environment have contributed to the improved momentum in the local bond market. These positive sentiments assisted to pave the way for the Company to price its CCPs at a competitive yield,” said President/Chief Executive Officer, Datuk Chung Chee Leong.
“The CCPs was priced ahead of the Monetary Policy Meeting (MPC) scheduled on 22 January 2020 and competitively priced at the corresponding 3-month KLIBOR (Kuala Lumpur Interbank Offered Rate) benchmark rate, minus 3 bps based on KLIBOR fixing on the pricing date. The pricing of the CCPs represented 31 bps above Malaysian Treasury Bills,” added Datuk Chung.
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.