Kuala Lumpur, 5 January 2023 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful conclusion of multi-tenured Conventional Medium Term Notes and Islamic Medium Term Notes amounting to a total of RM3.195 billion. Proceeds from the issuances will be used to fund the purchase of housing loans and house financing from the domestic financial system.
Cagamas President/Chief Executive Officer, Datuk Chung Chee Leong said, “We are pleased to conclude the year with our highest total funds raised at RM24.9 billion, which was about 30% higher than the preceding year and highest raised since 1999. This marks a strong ending to an eventful year for the Company.”
“Going forward, despite the continued challenging global environment, Cagamas remains committed towards its efforts in fulfilling its mandate as a financial intermediary between the capital market and the Malaysian housing sector,” added Datuk Chung. The papers 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.
Cagamas Berhad (Cagamas), the National Mortgage Corporation of Malaysia, was established in 1986 to promote the broader spread of home ownership and growth of the secondary mortgage market in Malaysia. It issues bonds and sukuk to finance the purchase of housing loans from financial institutions and non-financial institutions. The provision of liquidity to financial institutions at a reasonable cost to the primary lenders of housing loans encourages further expansion of financing for houses at an affordable cost.
The Cagamas model is well regarded by the World Bank as the most successful secondary mortgage liquidity facility. Cagamas is the second largest issuer of debt instruments after the Government of Malaysia and the largest issuer of AAA corporate bonds and sukuk in the market. Since incorporation in 1986, the Cagamas Group has cumulatively issued circa RM391 billion worth of corporate bonds and Sukuk.
Cagamas’ bonds and sukuk continue to be assigned the highest ratings of AAA/Stable/P1 by RAM Rating Services Berhad and AAA/MARC-1 and AAAIS/MARC-1IS by MARC Ratings Berhad, denoting its strong credit quality. Cagamas is also well regarded internationally and has been assigned local and foreign currency long-term issuer ratings of A3 by Moody’s Investors Service Inc. that are in line with Malaysian sovereign ratings.
Registration No. 198601008739 (157931-A)
Level 32, The Gardens North Tower
Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur
Tel: +603 - 2262 1800 I Fax: +603 - 2282 9125
Tel: +603 - 2262 1719
Tel: +603 - 2262 1868