Kuala Lumpur, 30 June 2020 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its issuance of RM350 million comprising RM45 million 1-year Conventional Medium Term Notes (CMTNs), RM55 million 2-year CMTNs and RM250 million 3-month Conventional Commercial Papers (CCPs). Proceeds from the issuance will be used to fund the purchase of housing loans and eligible assets from the financial system.
“Global markets sentiments were mixed as investors weighed the risk of resurgence of COVID-19 against improved expectations of an economic recovery. Onshore market was muted as investors adopted a wait-and-see approach, before the upcoming Monetary Policy Committee meeting by Bank Negara Malaysia in early July,” said President/Chief Executive Officer, Datuk Chung Chee Leong.
“Against the backdrop of rising market uncertainties, Cagamas had successfully priced its 1- and 2-year CMTNs which were concluded at 2.55% and 2.70% respectively, 51 basis points (bps) above Malaysian Government Securities, whilst the CCPs were priced at the 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) rate or equivalent to 2.28%, 25 bps above Malaysian Treasury Bills. The issuances were concluded via private placement basis,” added Datuk Chung.
The transaction marked the Company’s eighth issuance exercise for the year and brings the year-to-date (YTD) issuance amount to RM3.81 billion.
The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu among themselves and with all other existing unsecured obligations of the Company. They will be listed and tradable under the Scripless Securities Trading System.