Cagamas Concludes Pricing of RM110 Million of Bonds and Sukuk

Kuala Lumpur, 10 August 2020 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its issuances of RM110 million comprising 1-year Conventional Medium Term Notes (CMTNs) and Islamic Medium Term Notes (IMTNs). Proceeds from the issuances will be used to fund the purchase of housing loans and house financing from the financial system.

“The resurgence of COVID-19 infection cases globally coupled with renewed US-China tension dominating headlines, resulted in safe-haven assets continuing to be highly sought after. On the domestic front, demand for fixed income instruments remain supportive due to the easing of monetary policy and fiscal stimulus packages coupled with benign inflation outlook,” said President/Chief Executive Officer of Cagamas Berhad, Datuk Chung Chee Leong.

“The issuances were competitively priced at 2.15%, 37 bps and 35 bps above respective Malaysian Government Securities (MGS)/Malaysian Government Investment Issues (MGII),” added Datuk Chung.

The transaction marked the Company’s tenth issuance exercise for the year and brings the year-to-date issuance amount to RM4.22 billion.

The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu among themselves and with all other existing unsecured obligations of the Company. They will be listed and tradable under the Scripless Securities Trading System.