Cagamas Concludes Aggregate Issuances of RM1.7 billion Equivalent from Both Domestic and International Markets

Kuala Lumpur, 20 April 2023 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful conclusion of an aggregate RM1.7 billion equivalent worth of issuances, comprising RM300 million 3-month Conventional Commercial Papers (CCPs), RM410 million 3-year Conventional Medium Term Notes (CMTNs), RM500 million 3-year Islamic Medium Term Notes (IMTNs), SGD60 million 1-year Singapore Dollar Fixed Rate Medium Term Notes (SGD EMTNs) and SGD90 million 2-year SGD EMTNs.

“We are pleased with the successful conclusion of our issuances in both domestic and international markets, as demand for Cagamas’ RM and SGD denominated papers continue to remain resilient despite the lingering financial market uncertainties. Proceeds raised from the issuances will be used to fund the purchase of housing loans and house financing from the domestic financial system, indicating that Cagamas, being the financial intermediary between the fixed income and mortgage market, continues its role as one of the viable funding options for Financial Institutions (FIs) in Malaysia,” said President/Chief Executive Officer, Datuk Chung Chee Leong.

“The 3-year CMTNs and IMTNs were successfully concluded via a book building exercise and garnered a healthy bid-to-cover ratio of 2.1 times. This allowed the Company to tighten the pricing by 3 basis points (bps) from an initial pricing of 3.93% to 3.90%. The book building exercise saw participation from a diversified pool of investors, mainly from FIs, asset managers and insurance companies. The CCPs and SGD issuances were priced via a private placement exercise,” said Datuk Chung.

“The conclusion of the SGD issuances brings the total cumulative year-to-date SGD denominated issuance to SGD380 million and total funds raised by the Company to-date in 2023 stood at RM5.84 billion,” added Datuk Chung.

The SGD denominated bonds, issued via the Company’s wholly-owned subsidiary, Cagamas Global P.L.C. are fully and unconditionally guaranteed by Cagamas while the RM issuances, which 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.