Conventional Debt Securities

Printer-friendly versionSend by emailPDF version

Cagamas Debt Securities

Cagamas issues debt securities to finance the purchase of housing mortgages and other consumer receivables for both conventional loans and Islamic financing.

Conventional Debt Securities

The conventional MYR debt securities typically issued under RM20 billion Islamic/Conventional Commercial Papers and RM40 billion Islamic/Conventional Medium Term Notes programmes are as follows:

  1. Fixed Rate Medium Term Notes (MTNs)
    MTNs are issued with tenures of more than 1 year and carry a fixed coupon rate which is determined at the point of issuance. Interest on the MTNs are normally paid half-yearly. The redemption of the MTNs are at nominal value together with interest due upon maturity.

     

  2. Floating Rate Notes (FRNs)
    FRNs are issued with an adjustable interest rate pegged to the KLIBOR. The interest is paid at 3 or 6 monthly intervals. They are redeemed at face value together with the interest due upon maturity.

     

  3. Commercial Paper (CPs)
    CPs are short-term instruments with maturities of between 1 to 12 months, issued at either a discount from the face value where the notes are redeemable at their nominal value upon maturity or interest bearing notes where interest is paid on a semi-annual basis or such other periodic basis as determined by Cagamas.

     

Where permitted by the respective trust deeds, Cagamas may at any time purchase its debt securities and the repurchased debt securities shall be cancelled according to the requirements of the trust deeds.

Conventional Foreign Currency (FCY) Debt Securities

FCY Medium Term Notes (EMTNs)

The EMTNs are issued by Cagamas Global P.L.C., a wholly-owned subsidiary of Cagamas Berhad, under the USD2.5 billion Conventional Multicurrency Medium Term Note Programme (‘The Programme). Cagamas Global P.L.C. is a Special Purpose Vehicle (SPV) established to facilitate issuances under the Programme which are unconditionally and irrevocably guaranteed by Cagamas Berhad.

The instrument issued under the programme is as follows:

Fixed Rate EMTNs

The Notes are denominated in any currency (other than Ringgit Malaysia) with tenures of more than 1 year. They carry a fixed coupon rate with interest paid either half-yearly or quarterly basis. The redemption is at nominal value together with interest due upon maturity.

The Notes purchased by Cagamas Global P.L.C., Cagamas Berhad or its subsidiaries may be held, resold or surrendered for cancellation as permitted under the terms and conditions of Offering Circular.

Outstanding Cagamas Debt Securities as at 30 September 2017
Instrument Foreign Currency (mil) Malaysian Ringgit (mil)
Fixed Rate Medium Term Notes (MTNs)   17,185
Floating Rate Notes (FRNs)   300
Commercial Paper (CPs)    
Fixed Rate FCY Medium Term Notes (EMTNs)    
  HKD 1,000 422
  USD 950 3,644
  SGD 542 1,655
Total   23,206