Cagamas Concludes Pricing of Conventional and Islamic Commercial Papers Amidst Economic Slowdown

Kuala Lumpur, 24 February 2020 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its combined issuances of RM605 million comprising RM300 million 3-month Conventional Commercial Papers (CCPs) and RM305 million 3-month Islamic Commercial Papers (ICPs). Proceeds from the issuances will be used to fund the purchase of housing loans and Islamic home financing from the domestic financial system.

“Market uncertainties amidst a challenging global economy and slower momentum in domestic activities, exacerbated by the recent Covid-19 outbreak saw investors shifting investments into haven assets. Expectations of monetary policy easing by the market coupled with the pending announcement of economic stimulus package by the Government also provided support for the Company’s fund-raising exercise”, said President/Chief Executive Officer, Datuk Chung Chee Leong.

“Due to strong demand from the market, the Company had successfully priced its combined issuances at a competitive pricing level of 15 bps below the corresponding 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) benchmark rate or equivalent to 2.94% on the pricing date. The pricing of the CCPs and ICPs also represented 26 bps and 29 bps over the respective Malaysian Treasury Bills and Malaysian Islamic Treasury Bills”, added Datuk Chung.

The conclusion of the deals represent the Company’s second issuance exercise this year which brings the Company’s year-to-date issuance to RM805 million.

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.