Cagamas Ushers in 2021 with Bonds and Sukuk Issuances Worth RM710 Million

Kuala Lumpur, 19 January 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM710 million; comprising RM300 million Islamic Commercial Papers (ICPs), RM300 million Conventional Commercial Papers (CCPs), RM55 million 1-year Conventional Medium Term Notes (CMTNs) and RM55 million 3-year CMTNs. Proceeds from these issuances will be used to fund the purchase of house financing, housing loans and industrial hire purchases from the financial system.

“We are excited to start the year with the successful conclusion of transactions despite headwinds on multiple fronts arising from the continued surge of COVID-19 cases which resulted in another Movement Control Order and state of emergency declaration by the Government, fueling a growing uncertainty on expectations of a strong domestic economic recovery,” said Datuk Chung Chee Leong, President/Chief Executive Officer of Cagamas.

“The successful conclusion of these transactions indicates continued confidence in Cagamas papers, supported by a strong and resilient domestic bond market,’’ added Datuk Chung.

Both ICPs and CCPs were competitively priced at the corresponding 3-month KLIBOR minus 2 basis points (bps), or equivalent to 1.92% on KLIBOR fixing on the fixing date, representing 19 bps spread above the corresponding Malaysia Islamic Treasury Bills (MITB). The CMTNs were priced at a spread of 37 bps and 52 bps above the corresponding Malaysian Government Securities.

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.