Kuala Lumpur, 30 March 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM400 million, comprising RM150 million 3-month Conventional Commercial Papers (CCPs) and RM250 million 3-month CCPs. 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, “The recent uptick in US Treasury yields amid rising US inflation expectations, coupled with broad economic recovery across the region, pushed global and domestic bond yields higher. Nevertheless, continued support by investors for the Company’s fund-raising exercise contributed towards the successful pricing of the Company’s short-term papers.”
“Both CCPs were priced at the corresponding 3-months Kuala Lumpur Interbank Offered Rate (KLIBOR) plus 6 basis points (bps), or equivalent to 2.00% based on KLIBOR fixing on the pricing date. The spreads were 21 bps above the corresponding Malaysia Treasury Bills,” added Datuk Chung.
The new issuances bring the Company’s aggregate issuance for the year to RM3.1 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.