CAGAMAS Bhd has issued RM1 bil worth of bonds and sukuk comprising RM500 mil two-year conventional medium term notes (CMTNs), RM300 mil six-month Islamic commercial papers (ICPs) and RM200 mil three-month conventional commercial papers (CCPs).
In a statement, the national mortgage corporation said proceeds from the respective issuances would be used to fund the purchases of mortgage loans or house financing from the financial system.
The transactions also marked its fifth issuance exercise for the year and brings the year-to-date issuance amount to RM2.605 bil.
With these transactions, it has concluded a total of RM1.8 bil issuances within a month.
“This signals continued support from investors and demonstrates the strength and depth of the company’s investor base in these challenging market conditions,” said president and chief executive officer Datuk Chung Chee Leong.
He said Cagamas had strategised and opted for a public book building exercise for its CMTNs issuance to entice wider participation from investors.
“The issuance received overwhelming response with an initial book-to-cover (BTC) ratio of 2.8 times, resulting in the company to upsize its issue size from the initial RM300 mil to a final RM500 mil.
“Cagamas was also able to tighten the yield from an initial price guidance of 3.15% to the final 3.10% with a final BTC of 1.7 times.”
Both the ICPs and CCPs were concluded on a private placement basis, Chung added. – April 16, 2020, Bernama
