The latest quoted Cagamas rates are published daily in two leading newspapers, namely the New Straits Times and The Star. Cagamas rates are available online in THOMSON REUTERS, BLOOMBERG (BTMM MA) and on Cagamas website.
No. Cagamas rates are only offered to financial institutions, selected corporations and the Government. Cagamas does not purchase loans and debts from non-banking institutions unless approved by its Board.
Cagamas rates are dependent on Cagamas bond yields and market conditions.
No. The selling institution represents and warrants that the loans and debts comply with the eligibility criteria. The external auditor of the selling institution will be appointed to audit the loans and debts sold to Cagamas on an annual basis.
The selling institution is appointed as custodian and therefore continues to keep the security documents.
Any approved Financial Institutions.
For loans sold under Purchase with Recourse scheme, the selling institution is required to repurchase such loans and debts from Cagamas and replace the same, if required to do so, with eligible loans and debts.
Cagamas bonds can be purchased from the primary or secondary market. New issues are sold in the primary market. Investors can subscribe for new issues through Cagamas or appointed Lead Managers. Existing Cagamas bonds can be purchased from the secondary market.
Lead Managers are financial institutions appointed by Cagamas to invite investors to subscribe for new issues in the primary market.
Minimum subscription amount for Cagamas bonds in the primary market is RM1,000,000 while the minimum purchase denomination in the secondary market is RM1,000.
No. All Cagamas bonds are scripless. They are recorded and maintained under the Real Time Electronic Transfer of Funds and Securities (RENTAS) System. Holdings of Cagamas bonds by customers are recorded in the customers’ account at Authorised Depository Institutions (ADI).
Authorised Depository Institutions (ADI) are financial institutions appointed by BNM to maintain bond custody accounts of investors, collect and pay interest, dividend and redemption proceeds to beneficial owners and provide evidence of ownership to prove entitlement to voting rights.
Yes. Cagamas issues Islamic bonds (Sukuk) under the 3 Sukuk Programmes as follows:
- RM60 billion Islamic / Conventional Medium-Term Notes (IMTNs/MTNs) Programme
- RM20 billion Islamic/ Conventional Commercial Papers (ICPs/ CPs) Programme
- USD2.5 billion Multicurrency Sukuk Issuance Programme
Some Cagamas bonds do have embedded call options. Cagamas may also purchase debt securities in the open market. Debt securities purchased by Cagamas will be cancelled.