Cagamas Concludes Pricing For RM705 Million Worth Of Bonds And Sukuk

Kuala Lumpur, 22 May 2020 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its RM705 million combined issuances comprising RM305 million 3-month Islamic Commercial Papers (ICPs), RM300 million 3-month Conventional Commercial Papers (CCPs) and RM100 million dual tenure 1 and 2-year Conventional Medium Term Notes (CMTNs). Proceeds from the respective issuances will be used to fund the purchases of eligible assets including housing loans/house financing from the financial system.

“The widely expected Overnight Policy Rate (OPR) cut by Bank Negara Malaysia (BNM) recently, resulted in some housing loans originating institutions and others, to seek liquidity solutions from Cagamas and securing competitive funding rates given the continued low interest rate environment. This led to successful conclusion of the above deals which were conducted via private placement basis,” said President/ Chief Executive Officer, Datuk Chung Chee Leong.

“We are also pleased to see that the Company’s issuances continue to be supported by investors indicating improved sentiment in the domestic capital market. This is partly due to various measures undertaken by BNM in supporting the efficient functioning of the domestic financial markets coupled with the recovery in global crude oil prices. The transactions marked the Company’s sixth issuance exercise for the year and brings the year-to-date (YTD) issuance amount to RM3.31 billion,” added Datuk Chung.

The papers, 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. They will be listed and tradable under the Scripless Securities Trading System.