Kuala Lumpur, 6 March 2024 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful conclusion of RM960 million worth of bonds and sukuk comprising RM460 million 1-year Conventional Medium Term Notes, RM200 million 2-year CMTNs and RM300 million Islamic Medium Term Notes (IMTNs).
President/ Chief Executive Officer of Cagamas, Kameel Abdul Halim said, “The Company successfully issued RM960 million worth of bonds and sukuk through its first public book building exercise this year.”
“The order book received overwhelming response, oversubscribed by 2.3 times which attracted subscription from a diverse pool of investors including financial institutions, pension funds, insurance companies, foreign investors and asset managers. This allowed the Company to successfully tighten the yield by 5 basis points (bps) from the initial price guidance. The bonds and sukuk were priced competitively at a spread of 35 bps over the Malaysian Government Securities. This demonstrated the strength and resilience of the domestic fixed income market. Proceeds raised from the issuances will be used to fund the purchase of Islamic home financings and housing loans from the domestic financial system, reflecting continued provision of liquidity by Cagamas to the domestic banking system,” said Kameel.
The new issuance will bring the Company’s aggregate funds raised for the year to RM2.08 billion. 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.