Kuala Lumpur – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful conclusion of an aggregate RM1.03 billion equivalent worth of funds raised, comprising RM300 million 3-month Islamic Commercial Papers (ICPs) and RM735 million 1-year Islamic Medium Term Notes (IMTNs).

President/ Chief Executive Officer, Datuk Chung Chee Leong said, “Cagamas’ fund-raising activities continue to gain momentum with the successful conclusion of the funding exercises in an improved domestic market condition. Proceeds raised from the issuances will be used to fund the purchase of Islamic home financings from the domestic financial system, reflecting continued provision of liquidity by the Company to the domestic banking system.”

“The IMTNs were successfully concluded via a book building exercise that allowed the Company to tighten the pricing by 5 basis points (bps) from an initial price guidance of 3.79% to the final 3.74%, which registered a 40 basis points (bps) spread against the Malaysian Government Securities with a final book-to-cover ratio of 1.89 times. The issuance attracted subscription from a diversified range of investors including financial institutions, asset management and insurance companies. The ICPs were privately placed out,” added Datuk Chung.

The new issuances bring the Company’s aggregate issuances for the year to RM14.01 billion. The papers, which 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. They will be listed and tradable under the Scripless Securities Trading System.

-Ends-

About Cagamas

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, Cagamas Group has cumulatively raised funds circa RM408.46 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 Malaysian Rating Corporation 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.

Cagamas Berhad
Registration No. 198601008739 (157931-A)
Level 32, The Gardens North Tower
Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur
www.cagamas.com.my

Media Enquiries 

Leanne Susau
communications@cagamas.com.my  

Lucia Wee
communications@cagamas.com.my