Cagamas Continues To Tap Capital Market With Conclusion Of RM1.1 Billion Bonds And Sukuk

Kuala Lumpur, 12 December 2019 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, today announced the total issuances of RM1.1 billion debt securities comprising RM300 million 3-year Conventional Medium Term Notes (CMTNs), RM300 million 3-year Islamic Medium Term Notes (IMTNs) and RM500 million 3-month Conventional Commercial Papers (CCPs). The issuance proceeds will be used to fund the purchase of mortgage loans and Islamic house financings from the financial system.

“We are pleased with the successful conclusion of the Company’s 24th and 25th issuance exercises for this year which brings the total issuances for year-to-date in 2019 to RM9.04 billion comprising RM6.04 billion conventional bonds and RM3.00 billion sukuk,” said President/Chief Executive Officer, Datuk Chung Chee Leong.

“The Company’s CMTNs and IMTNs were competitively priced at final coupon/profit rate of 3.38% with 25 to 33 basis points (bps) over Malaysian Government Securities (MGS)/Malaysian Government Investment Issues (MGII) and 5 bps above governmentguaranteed (GG) bonds and sukuk of equivalent tenure,” added Datuk Chung.

“Riding on the strong demand for Cagamas papers, the Company has also successfully priced RM500 million 3-month CCPs at a competitive pricing level of the corresponding 3-month KLIBOR benchmark rate or equivalent to 3.35% on pricing date”, Datuk Chung further added.

The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu among themselves and with all other existing unsecured obligations of the Company.