Cagamas Concludes Issuance of RM1.025 billion Worth of 1-Year Floating Bonds and Sukuk Amid Rising Rates and Inflation Concerns

Kuala Lumpur, 30 May 2022 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful pricing of its RM345 million 1-year Floating Profit Rate Islamic Medium Term Notes (IMTNs) and RM680 million 1-year Floating Rate Conventional Medium Term Notes (CMTNs). The proceeds from the IMTNs and CMTNs will be used to fund the purchase of house financing and housing loans from the financial system.

“Despite the challenging market environment arising from continued geopolitical tension and growing expectations of central banks to begin expediting the removal of policy accommodation, liquidity in the local fixed income market remains stable and resilient. The IMTNs and CMTNs represent the first issuance concluded by the Company post- Overnight Policy Rate hike of a quarter basis point by Bank Negara Malaysia,” said President/Chief Executive Officer, Datuk Chung Chee Leong.

The IMTNs and CMTNs, with its floating rate mechanism, provide potentially higher returns to investors amid a rising interest rate environment. The deals were successfully priced with 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) reference at equivalent to 2.66% based on KLIBOR fixing on the pricing date. The new issuance brings the Company’s aggregate issuances for the year to RM7.19 billion.

The IMTNs and CMTNs 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.