Kuala Lumpur, 14 January 2022 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its first issuance for the year - RM300 million 3-month Islamic Commercial Papers (ICPs) which was printed from its RM20 billion Islamic and Conventional Commercial Paper Programme. Proceeds from the issuance will be used to fund the purchase of house financing from the domestic financial system.
“We are delighted to start the year on a positive note with the successful issuance of the Company’s short-term papers amid a hawkish tone in raising interest rates in the United States in response to a surging inflation which is expected to keep the pressure on global fixed income markets, including Malaysia,” said Datuk Chung Chee Leong, President/Chief Executive Officer of Cagamas.
The CCPs were priced at the corresponding 3-month Kuala Lumpur Interbank Offer Rate (KLIBOR) benchmark based on KLIBOR fixing on the pricing date, representing a spread of 23 bps above the corresponding Malaysian Islamic Treasury Bills.
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.