Cagamas Concludes RM1 Billion Bonds Against Choppy Market Backdrop

Kuala Lumpur, 7 April 2022 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its pricing of RM1 billion 5-year Conventional Medium Term Notes (CMTNs) to fund the purchase of housing loans from the domestic financial system. The transaction also represents the largest 5-year CMTNs issuance by the Company since December 2017.

Cagamas President/Chief Executive Officer, Datuk Chung Chee Leong said, “The successful conclusion of the 5-year CMTNs reflects resilience against a choppy market backdrop due to further upward pressure in the domestic bond yields. This mirrors global bond movements as more countries progressively transition towards endemic management of COVID-19.”

“The CMTNs, priced via private placement, were successfully priced with a spread of 22 basis points above the corresponding Malaysian Government Securities. The new issuance brings the Company’s aggregate issuances for the year to RM5.3 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.