Cagamas Concludes RM1.5 Billion Issuances of Bonds

Kuala Lumpur, 24 May 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM1.5 billion, comprising two tranches of 2-year Conventional Medium Term Notes (CMTNs) with an issue amount of RM700 million and RM800 million, respectively. Proceeds from the issuances will be used to fund the purchase of housing loans from the financial system.

Cagamas President/Chief Executive Officer, Datuk Chung Chee Leong said, “We are pleased with another successful conclusion of the Company’s latest issuances within two consecutive weeks, following the RM1.04 billion issuances last week. The pricing exercise of these latest issuances was concluded in a relatively muted market after the Eid holiday break and successfully received encouraging support from investors.”

“The RM700 million issuance was concluded via private placement while the second tranche of RM800 million was conducted via book building exercise, which was upsized to RM800 million from an initial size of RM500 million. The book building exercise attracted a book size of RM925 million from a diverse group of domestic and offshore investors which allowed the Company to close the final yield at 2.50% from the initial price guidance of 2.55%, registering a 44 basis points spread against the Malaysian Government Securities,” said Datuk Chung.

The new issuances bring the Company’s aggregate issuance for the year to RM5.9 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.