Cagamas Concludes Issuance of RM300 Million Islamic Commercial Papers

Kuala Lumpur, 13 July 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its issuance of RM300 million 3-month Islamic Commercial Papers (ICPs). The ICPs will be issued under the Islamic Commodity Murabahah structure and proceeds from the issuance will be used for the purchase of Shariah compliant assets.

“We are pleased with the conclusion of the Company’s latest issuance which saw continued interest in our short term papers, ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting. On the global front, the outlook on growth remains uncertain, fueled by the concerns that the economic recovery were showing signs of faltering amid a surge in COVID-19 cases driven by the emergence of new variants, further heightening fears of restriction imposition. Domestically, investors continue to remain cautious due to a lack of strong catalyst in the market, given the uncertainties surrounding the COVID-19 pandemic and its vaccination progress,” said Datuk Chung Chee Leong, President/Chief Executive Officer of Cagamas.

“The ICPs were priced at the corresponding 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus 5 basis points (bps), or equivalent to 1.99% based on KLIBOR fixing on the pricing date. The spread was 23 bps above the corresponding Malaysian Islamic Treasury Bills,” added Datuk Chung.

The new issuance brings the Company’s aggregate issuance for the year to RM8.45 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.