Kuala Lumpur, 12 October 2022 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful pricing of its RM100 million 5-year Conventional Medium Term Notes (CMTNs). Proceeds from the issuance will be used to fund the purchase of eligible assets from the financial system.
“We are pleased with the successful conclusion of the CMTNs, representing the Company’s 26 th issuance exercise for the year despite cautious sentiments ahead of Malaysia’s Budget 2023 announcement. This reflects resilience in the Company’s issuance, evidenced by the continued support from domestic investors,” said President/Chief Executive Officer of Cagamas, Datuk Chung Chee Leong.
“The CMTNs, priced via private placement, were successfully priced at 45 basis points (bps) above the corresponding Malaysian Government Securities, 22 bps above the corresponding Government Guaranteed papers and 23 bps below the AAA rated corporate bonds. The new issuance brings the Company’s aggregate issuances for the year to RM12.76 billion,” added Datuk Chung.
The papers 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.
Cagamas Berhad (Cagamas), the National Mortgage Corporation of Malaysia, was established in 1986 to promote the broader spread of home ownership and growth of the secondary mortgage market in Malaysia. It issues bonds and sukuk to finance the purchase of housing loans from financial institutions and non-financial institutions. The provision of liquidity to financial institutions at a reasonable cost to the primary lenders of housing loans encourages further expansion of financing for houses at an affordable cost.
The Cagamas model is well regarded by the World Bank as the most successful secondary mortgage liquidity facility. Cagamas is the second largest issuer of debt instruments after the Government of Malaysia and the largest issuer of AAA corporate bonds and sukuk in the market. Since incorporation in 1986, Cagamas has cumulatively issued circa RM371.5 billion worth of corporate bonds and Sukuk.
Cagamas’ bonds and sukuk continue to be assigned the highest ratings of AAA/Stable/P1 by RAM Rating Services Berhad and AAA/MARC-1 and AAAIS/MARC-1IS by Malaysian Rating Corporation Berhad, denoting its strong credit quality. Cagamas is also well regarded internationally and has been assigned local and foreign currency long-term issuer ratings of A3 by Moody’s Investors Service Inc. that are in line with Malaysian sovereign ratings.
Cagamas Berhad Registration
No. 198601008739 (157931-A) Level 32,
The Gardens North Tower Mid Valley City,
Lingkaran Syed Putra 59200 Kuala Lumpur
Tel: +603 - 2262 1800 I Fax: +603 - 2282 9125
Tel: +603 - 2262 1719
Tel: +603 - 2262 1868