Cagamas Concludes Issuance of RM500 Million Worth of Bonds Inclusive Social Bonds

Kuala Lumpur, 30 August 2022 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful pricing of its RM500 million bonds, comprising RM45 million 2-year ASEAN Social Bonds (Social Bonds), RM205 million 2-year Conventional Medium Term Notes (CMTNs) and RM250 million 3-year CMTNs. Proceeds from the issuances will be used to fund the purchase of eligible assets from the financial system.

“We are pleased with the successful conclusion of the above issuances, which includes Social Bonds, marking the Company’s second sustainability-related transaction in the same month. To date, the Company has concluded RM1.7 billion worth of sustainabilityrelated bonds and sukuk since its inaugural issuance in 2020. This demonstrates the Company’s commitment to further catalyse the development of a deeper sustainable and responsible fixed income capital market,” said President/Chief Executive Officer, Datuk Chung Chee Leong.

“The Company successfully priced its 2-year Social Bonds at 2 basis points (bps) lower than the 2-year CMTNs, recording competitive spreads of 40 to 42 bps above the corresponding Malaysian Government Securities. The Social Bonds for affordable housing were assigned the highest Social Benefit rating of Tier-1 by RAM Sustainability Sdn Bhd, under the Cagamas’ Sustainability Bond/Sukuk Framework,” added Datuk Chung.

The conclusion of the above transactions brings the Company’s year-to-date issuance amount to RM10.55 billion, of which RM790 million were sustainability-related issuance. The issuance will be redeemed at their full nominal value upon maturity and are unsecured obligations of the Company, ranking pari passu with all other existing unsecured obligations of the Company.