KUALA LUMPUR: National mortgage corporation Cagamas Bhd has announced the combined issuance of RM1.2 bil bonds and sukuk, comprising RM600 mil Islamic Commercial Papers (ICPs), RM200 mil Conventional Commercial Papers (CCPs) and RM400 mil Islamic Medium-Term Notes (IMTNs).
President/CEO Datuk Chung Chee Leong said the proceeds from the combined issuance would be used to fund the purchase of mortgage loans and Islamic house financing from the domestic financial system. “We are pleased to conclude the year with yet another successful issuance representing the company’s 26th issuance exercise which brings the aggregate issuances for the year to RM10.2 bil, marking the third consecutive year the company has surpassed RM10 bil worth of issuances,” he said in a statement on Dec 23.
The six-month CCPs/ICPs are competitively priced at 3.25%, 20 basis points (bps) above six-month Malaysia Treasury Bills and 17 bps above Malaysian Islamic Treasury bills, while the one-year IMTNs are competitively priced at 3.29%, 26 bps above the corresponding Malaysia Government Investment Issue.
“The company remains optimistic as it continues to fulfil its mandate as a financial intermediary between the capital market and the Malaysian housing sector,” Chung said.
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. – Dec 23, 2019, Bernama
