Kuala Lumpur, 5 August 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its first double issuances of an ASEAN Sustainability SRI Sukuk (SRI Sukuk) and ASEAN Sustainability Bonds (Sustainability Bonds) totalling RM300 million, issued under the existing RM60 billion Islamic/Conventional Medium Term Notes Programme. The issuances, comprising a 3-year RM100 million SRI Sukuk and RM200 million Sustainability Bonds, were issued to fund the purchase of eligible Islamic financing and housing loans for affordable housing.
“After the success of our inaugural sustainability issuances last year, Cagamas continues its efforts to facilitate the mobilisation of its issuance proceeds towards the development of sustainability financing. We are glad to see the increasing awareness and support given by investors on sustainability financing and issuances of such nature which would allow investors to deploy capital towards essential social needs,” said Datuk Chung Chee Leong, President/Chief Executive Officer of Cagamas.
The issuances, conducted via private placement exercise, were priced at 38 to 43 basis points above the corresponding 3-year Malaysian Government Investment Issue (MGII)/Malaysian Government Securities (MGS). The SRI Sukuk and Sustainability Bonds for affordable housing were assigned the highest Social Benefit rating of Tier-1 by RAM Sustainability Sdn Bhd under Cagamas’ Sustainability Bond/Sukuk Framework. The transactions marked the Company’s 18th issuance exercise for the year and brings the year-to-date issuance amount to RM8.95 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.