Cagamas Continues Positive Momentum with RM1.195 Billion Issuances Amid Global Market Uncertainties

Kuala Lumpur, 18 February 2022 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM1.195 billion, comprising RM700 million 3-month Conventional Commercial Papers (CCPs), RM345 million 3-month Islamic Commercial Papers (ICPs) and RM150 million 2-year Conventional Medium Term Notes (CMTNs). Proceeds from the issuances will be used to fund the purchase of housing loans and Islamic financing from the domestic financial system.

Cagamas President/ Chief Executive Officer, Datuk Chung Chee Leong said, “We are pleased with the successful conclusion of the Company’s latest issuances, priced prior to news of the US Bureau of Labor Statistics’ Consumer Price Index biggest upward surprise of 7.5% year-on-year gain since February 1982 and headlines of an escalated conflict between Russia and Ukraine.”

“The ICPs and CCPs were priced at 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus 3 basis points (bps), equivalent to 2.00% based on KLIBOR fixing on the pricing date. The 2-year CMTNs were priced at 2.86%. The spreads were 20 to 21 bps above the corresponding Malaysia Islamic Treasury Bills (MITB) and Malaysia Treasury Bills (MTB) for the 3-month ICPs and CCPs papers whereas for the 2-year CMTNs, the spread was 45 bps above the Malaysian Government Securities (MGS),” said Datuk Chung.

“The concluded issuances were priced via a private placement exercise, which brings the Company’s aggregate issuances for the year to RM2.53 billion,” added Datuk Chung.

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.