Cagamas Sukuk Oversubscribes by 2.16 Times

Kuala Lumpur, 31 January 2022 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM1.03 billion, comprising RM100 million 1-year Islamic Medium Term Notes (IMTNs) and RM930 million 3-year IMTNs. Proceeds from the issuances will be used to fund the purchase of 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, supported by encouraging demand from investors amid challenging market conditions arising from the stronger indication of liquidity tapering and interest rate hike by the United States Federal Reserve.”

“The IMTNs were priced through a public book building exercise which successfully enticed participation from a diverse investor base; including financial institutions, insurance companies, asset managers, pension funds and statutory bodies. Demand for the Company’s papers were overwhelming, resulting in price tightening for the 3-year tranche from an initial price guidance of 3.33% to 3.31% and upsized from an initial RM500 million to a final issue size of RM930 million. The IMTNs registered spreads of 42 basis points (bps) against Malaysian Government Investment Issues,” added Datuk Chung.

The new issuances bring the Company’s aggregate issuances for the year to RM1.33 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.