Kuala Lumpur, 16 April 2020 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its RM1 billion combined issuances comprising RM500 million 2-year Conventional Medium Term Notes
(CMTNs), RM300 million 6-month Islamic Commercial Papers (ICPs) and RM200 million 3-month Conventional Commercial Papers (CCPs). Proceeds from the respective issuances will be used to fund the purchases of mortgage loans/house financing from the financial system.
“The transactions marked the Company’s fifth issuance exercise for the year and brings the year-to-date (YTD) issuance amount to RM2.605 billion. With these transactions, the Company has concluded a total of RM1.8 billion issuances within a month. This signals continued support from investors and demonstrates the strength and depth of the Company’s investor base in these challenging market conditions,” said President/Chief Executive Officer, Datuk Chung Chee Leong.
“Despite the cautious market outlook during this period with demand predominantly centred on Government papers, the Company had strategised and opted for a public book building exercise for its CMTNs issuance to entice wider participation from investors. The issuance received overwhelming response with an initial book-to-cover (BTC) ratio of 2.8 times, resulting in the Company to upsize its issue size from the initial RM300 million to a final RM500 million. The Company was also able to tighten the yield from an initial price guidance of 3.15% to the final 3.10% with a final BTC of 1.7 times.Both the ICPs and CCPs were concluded on a private placement basis,” 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 with all other existing unsecured obligations of the Company. They will be listed and tradable under the
Scripless Securities Trading System.