THE National Mortgage Corporation of Malaysia, Cagamas Bhd announced its RM350 mil combined issuances comprising RM45 mil 1-year Conventional Medium Term Notes (CMTNs), RM55 mil 2-year CMTNs and RM250 mil 3-month Conventional Commercial Papers (CCPs).
In a statement today, Cagamas said the proceeds from the respective issuances will be used to fund purchases of mortgage loans from the financial system.
It said the 1 and 2-year CMTNs were concluded at 3.25% and 3.45% respectively, 28 and 29 basis points (bps) above Malaysian Government Securities, whilst the CCPs were priced at 20 bps above the 3-month Kuala Lumpur Interbank Offered Rate rate or equivalent to 3.0% on the pricing date.
President/CEO Datuk Chung Chee Leong said risk sentiments in the local bond market remain fragile after experiencing major market turmoil recently while heavy market activities centred on the flight to liquidity triggered by the rapid spread of Covid-19 throughout the world coupled with potential global recession fears.
“Cagamas will continue to fulfil its role as a financial intermediary by providing liquidity to the banking system which is in support of Bank Negara Malaysia’s efforts in the recent announcement of measures to ensure sufficient liquidity in the system,” he said.
The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking equally among themselves and with all other existing unsecured obligations of the company, it said. — March 30, 2020, Bernama
