Cagamas' RM1.04 billion Bonds and Sukuk Receives Overwhelming Response

Kuala Lumpur, 18 May 2021 – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced its aggregate issuances of RM1.045 billion; comprising RM345 million 3-month Islamic Commercial Papers (ICPs), RM300 million 3-month Conventional Commercial Papers (CCPs) and RM400 million 3-year Islamic Medium Term Notes (IMTNs). Proceeds from the issuances will be used to fund the purchase of house financing and housing loans from the financial system.

Cagamas President/ Chief Executive Officer, Datuk Chung Chee Leong said, “We are pleased with the successful conclusion of the Company’s latest issuances supported by encouraging demand from investors.”

The Company’s book building exercise enticed participation from a wide and diverse base of investors. “We are encouraged by the strong support as evidenced by the overwhelming response with a final overall book-to-cover (BTC) ratio of 2.26 times, allowing the Company to tighten its IMTN yield from an initial price guidance of 2.85% to 2.78%, and registering a 42 basis points (bps) spread against the Malaysian Government Investment Issue (MGII),” said Datuk Chung.

“The ICPs and CCPs were priced at the corresponding 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus 5 basis points (bps), or equivalent to 1.99% based on KLIBOR fixing on the pricing date. The spread was 19 bps above the corresponding Malaysian Islamic Treasury Bills/Malaysian Treasury Bills,” added Datuk Chung.

The new issuances bring the Company’s aggregate issuance for the year to RM4.4 billion. 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.