Kuala Lumpur, 16 March 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM1 billion equivalent - comprising SGD130 million 1-year Singapore Dollar denominated Fixed Rate Medium Term Notes (SGD EMTNs), HKD800 million 1-year Hong Kong Dollar denominated Fixed Rate Medium Term Notes (HKD EMTNs) and RM175 million 1-year Conventional Medium Term Notes (CMTNs). Proceeds from the issuances will be used to fund the purchase of housing loans from the financial system.
President/Chief Executive Officer of Cagamas, Datuk Chung Chee Leong said, “We are pleased with the successful conclusion of the SGD EMTNs, HKD EMTNs and CMTNs issuances, amidst market volatility due to the rising US Treasury yields which triggered a rout in bond markets globally. Domestic bond markets were not spared from the knee-jerk reaction. Despite the headwinds, Cagamas successfully secured funding from three different markets to meet its funding needs, signalling continued strong demand for the Company’s foreign currency and domestic debt securities.”
The SGD EMTNs and HKD EMTNs were concluded at 1.00% and at 0.85% p.a. respectively, while the issuance of the CMTNs was competitively priced at 2.20% - a spread of 37 bps above the corresponding Malaysian Government Securities. The SGD EMTNs and HKD EMTNs were issued by the Company’s subsidiary, Cagamas Global P.L.C. which carries an issue rating of A3.
“The SGD EMTNs and HKD EMTNs represent the Company’s first dual foreign currency issuances for 2021, underlining its capability to provide competitive funding to onshore financial institutions through combined issuances of foreign currency and Ringgit denominated bonds,” added Datuk Chung.
The transaction marked the Company’s fifth issuance exercise for the year and brings the year-to-date issuance amount to RM2.65 billion. The SGD and HKD denominated bonds issued will be fully and unconditionally guaranteed by Cagamas Berhad. The issuances, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu with all other existing unsecured obligations of the Company.