Kuala Lumpur, 28 September 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM2.45 billion comprising RM400 million 3-month Conventional Commercial Papers (CCPs), RM550 million 2-year Conventional Medium Term Notes (CMTNs) and RM1.5 billion multi-tranche 1-, 2- and 3-year Islamic Medium Term Notes (IMTNs). Proceeds from the issuances will be used to fund the purchase of housing loans and eligible assets from the financial system.
“We are pleased to end our third quarter with the successful conclusion of these issuances. Although set against a backdrop of soft market conditions arising from market expectations of a possible tapering announcement by the U.S Federal Open Market Committee coupled with persistent concerns over potential default by one of the property firms in China and its impact towards the global markets, we are delighted by the strong support for Cagamas papers,” said Datuk Chung Chee Leong, President/Chief Executive Officer of Cagamas.
“The IMTNs were priced through a public book building exercise which successfully enticed participation from a diverse investor base comprising financial institutions, insurance companies, asset managers, sovereign wealth funds, pension funds, statutory body as well as foreign investors. Demands for the Company’s papers were overwhelming, resulting in tightening of the 1-year tranche from an initial price guidance of 2.20% to 2.18% while the 3-year tranche was upsized from an initial RM800 million to a final RM1.15 billion. The IMTNs registered competitive spreads of 35 to 39 basis points (bps) against Malaysian Government Investment Issues,” added Datuk Chung.
The other issuances were concluded via private placements and priced competitively, representing 22 to 47 bps above the corresponding Malaysian Treasury Bills and Malaysian Government Securities. The new issuances bring the Company’s aggregate issuances for the year to RM11.95 billion, surpassing the Company’s RM11.7 billion total issuances in the preceding year.
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 existing unsecured obligations of the Company. They will be listed and tradable under the Scripless Securities Trading System.