Cagamas issues Sukuk via its existing RM20 billion Islamic/Conventional Commercial Papers (ICPs/CCPs), and RM60 billion Islamic/Conventional Medium Term Notes (IMTNs/CMTNs) programmes and via its subsidiary, Cagamas Global Sukuk Berhad under the USD2.5 billion Multicurrency Sukuk Issuance Programme (“Multicurrency Sukuk”) to facilitate Islamic foreign currency funding programme.
The instruments issued under the programmes as follows:
Fixed Profit Rate Islamic Medium-Term Notes (IMTNs)
IMTNs are Ringgit denominated Sukuk with fixed profit rate with tenures of more than one year and are issued either at a premium, par or at a discount, with or without a profit rate. Profit distribution of the IMTNs are normally made on half-yearly basis. The redemption of the relevant IMTNs are at nominal value together with the profit due upon maturity.
Variable Profit Rate Notes (VRNs)
VRNs are Ringgit denominated IMTNs with tenures of more than one year with variable profit rate pegged to a reference rate, e.g. Kuala Lumpur Interbank Offered Rate (KLIBOR). Profit distributions of the VRNs are normally made on quarterly or half-yearly basis. At maturity, the face value of the relevant VRNs are redeemed with any outstanding profit amounts due on maturity.
Islamic Commercial Papers (ICPs)
ICPs are Ringgit denominated short term Islamic instruments with maturities ranging from one to twelve months, issued with or without profit paid, at either a discount from the face value where the relevant ICPs are redeemable at their nominal value upon maturity or at par with profit is paid on a semi-annual basis or on such other periodic basis as determined by Cagamas.
Cagamas may issue IMTNs and ICPs based on but not limited to the following Shariah principles:
- Murabahah (via a Tawarruq arrangement)
- Wakalah Bil Istithmar
Under the Multicurrency Sukuk , the sukuk is currently issued based on Shariah principle of Wakalah. The Sukuk EMTNs issuance is on a fully-paid basis and at a par issue price and the method of calculating the profit rate may vary between the issue date and the maturity date of the relevant series of Sukuk EMTNs issued.
|Outstanding Cagamas Sukuk as at 31 December 2023
|Foreign Currency (mil)
|Malaysian Ringgit (mil)