Cagamas Remains Market Choice For Funding in Times of High Market Volatility

Kuala Lumpur, 30 March 2020 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its RM350 million combined issuances comprising RM45 million 1-year Conventional Medium Term Notes (CMTNs), RM55 million 2-year CMTNs and RM250 million 3-month Conventional Commercial Papers (CCPs). Proceeds from the respective issuances will be used to fund the purchases of mortgage loans from the financial system.

“Risk sentiments in the local bond market remain fragile after experiencing major market turmoil recently while heavy market activities centered on the flight to liquidity triggered by the rapid spread of Covid-19 outbreak throughout the world coupled with potential global recession fears,” said President/Chief Executive Officer, Datuk Chung Chee Leong.

“Cagamas will continue to fulfill its role as a financial intermediary by providing liquidity to the banking system which is in support of Bank Negara Malaysia’s efforts in the recent announcement of measures to ensure sufficient liquidity in the system,” added Datuk Chung.

The 1 and 2-year CMTNs were concluded at 3.25% and 3.45% respectively, 28 and 29 bps above Malaysian Government Securities, whilst the CCPs were priced at 20 bps above the 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) rate or equivalent to 3.00% on pricing date.

The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu among themselves and with all other existing unsecured obligations of the Company. They will be listed and tradable under the Scripless Securities Trading System.