Cagamas Successfully Priced Over RM1 billion Worth of Bonds and Sukuk

Kuala Lumpur, 8 August 2022 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful pricing of its RM1.11 billion bonds and sukuk, comprising RM25 million 1-year Islamic Medium Term Notes (IMTNs), RM85 million 1-year Conventional Medium Term Notes (CMTNs), RM285 million 2-year ASEAN Social SRI Sukuk (Social SRI Sukuk), RM115 million 2-year IMTNs, RM110 million 2-year ASEAN Social Bonds (Social Bonds), RM100 million 3-year IMTNs and RM390 million 3-year CMTNs. Proceeds from the issuances will be used to fund the purchase of eligible assets from the financial system.

“We are pleased with the successful conclusion of the issuances after the widely expected interest rate hike by the Federal Reserve, marking its second 75 basis points (bps) hike in a row. The issuances, which include Social SRI Sukuk and Social Bonds, demonstrate our continued efforts to facilitate an emerging sustainable asset class and to promote the growth of a sustainable market ecosystem,” said President/Chief Executive Officer, Datuk Chung Chee Leong.

“The Company successfully priced its 2-year Social SRI Sukuk and Social Bonds at 2 bps lower than the 2-year IMTNs, recording competitive spreads of 39 to 45 bps above the corresponding Malaysian Government Securities/Malaysian Government Investment Issues for the overall issuances. The Social SRI Sukuk and Social Bonds for affordable housing were assigned the highest Social Benefit rating of Tier-1 by RAM Sustainability Sdn Bhd under the Cagamas’ Sustainability Bond/Sukuk Framework,” added Datuk Chung.

The conclusion of the above transactions brings the Company’s year-to-date issuance amount to RM10.05 billion. The issuance will be redeemed at their full nominal value upon maturity and are unsecured obligations of the Company, ranking pari passu with all other existing unsecured obligations of the Company.