Cagamas Concluded Aggregate Issuances of RM1.4 Billion Amid Market Uncertainties

Kuala Lumpur, 29 March 2023 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful conclusion of a combined RM1.4 billion worth of issuances, comprising RM300 million 3-month Conventional Commercial Papers (CCPs), RM100 million 3-month Islamic Commercial Papers (ICPs), RM600 million 2-year Conventional Medium Term Notes (CMTNs) and RM400 million 3-year CMTNs. Proceeds from the issuances will be used to fund the purchase of housing loans and eligible assets from the domestic financial system.

“We are pleased with the successful conclusion of the issuances ahead of the US Federal Reserve’s second consecutive increase of 25 basis points (bps) at its recently scheduled meeting, while market continued to remain cautious on further banking turmoil in the global scene,” said President/Chief Executive Officer, Datuk Chung Chee Leong.

“The CCPs and ICPs were priced at 5 bps to 8 bps below the 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR). The 2- and 3-year CMTNs were priced at 3.78% and 3.88% respectively, with spreads of 47 bps above the corresponding Malaysian Government Securities,” said Datuk Chung.

“The concluded issuances were priced via a private placement exercise, which brings the Company’s total funds raised for the year to RM4.14 billion,” added Datuk Chung.

The papers 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.