Kuala Lumpur, 29 October 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM1 billion comprising RM300 million 2-year ASEAN Sustainability Bonds (Sustainability Bonds) and RM700 million 3-year Conventional Medium Term Notes (CMTNs). Proceeds from the issuances will be used to fund the purchase of eligible sustainability assets and housing loans from the financial system.
Datuk Chung Chee Leong, President/Chief Executive Officer said, “Cagamas is pleased with the conclusion of the Company’s second transaction of Sustainability Bonds for the year, which brings the total year-to-date of sustainability related issuances to RM600 million. The positive conclusion of this issuance is a strong testament of Cagamas’ continued commitment to support sustainable product offerings in the market such as affordable housing loans.”
“The deals were priced amid a challenging market condition through a public book building exercise which successfully enticed participation from a diverse investor base comprising financial institutions, insurance companies, asset managers and statutory body. Demands for the Company’s papers were overwhelming, resulting in tightening of the 2-year Sustainability Bonds from an initial price guidance of 2.57% to 2.52% while the 3-year CMTNs was upsized from an initial RM500 million to a final RM700 million. Both issuances registered competitive spreads of 40 to 43 basis points against Malaysian Government Securities,” added Datuk Chung.
The above transactions represent the Company’s 25th issuance exercise for the year and brings total issuances year-to-date to RM13.25 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.