Kuala Lumpur, 23 August 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM755 million; comprising RM200 million 1-year Floating Rate Notes (FRNs), RM85 million 1-year Conventional Medium Term Notes (CMTNs), RM25 million 1-year Islamic Medium Term Notes (IMTNs), RM345 million 3-month Islamic Commercial Papers (ICPs) and RM100 million 3-month Conventional Commercial Papers (CCPs). Proceeds from the issuances will be used to purchase housing loans and Islamic home financing from the financial system.
“We are very appreciative of the support from our investors with the conclusion of our latest aggregate issuances. The turn to safe-haven assets arose from sentiments of lingering threats by the COVID-19 Delta variant which may dampen global economic recovery. We are confident that Cagamas papers will continue to be in demand while local market players remain cautious amid pandemic uncertainties under the current Economic Recovery Plan that aims to shape the growth trajectory moving forward,’’ said President/Chief Executive Officer, Datuk Chung Chee Leong.
“The 1-year FRNs marked the Company’s first FRNs issuance since 2019. This underscores the Company’s ongoing efforts in developing onshore caapital markets through the issuance of diversified structures, catering for various investment needs. The FRNs were priced competitively at the corresponding 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR), or equivalent to 1.94% based on KLIBOR fixing on the pricing date,” added Datuk Chung.
The other issuances were also priced competitively, representing 23 to 37 basis points above the corresponding Malaysian Islamic Treasury Bills, Malaysian Treasury Bills, Malaysian Government Investment Issues and Malaysian Government Securities. The new issuances bring the Company’s aggregate issuances for the year to RM9.5 billion.
The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu and with all other existin unsecured obligations of the Company. They will be listed and tradable under the Scripless Securities Trading System.