Cagamas issues RM1.2 bln bonds, sukuk

KUALA LUMPUR, Dec 23 — National mortgage corporation Cagamas Bhd has announced the combined issuance of RM1.2 billion bonds and sukuk, comprising RM600 million Islamic Commercial Papers (ICPs), RM200 million Conventional Commercial Papers (CCPs) and RM400 million Islamic Medium-Term Notes (IMTNs).

President/chief executive officer Datuk Chung Chee Leong said the proceeds from the combined issuance would be used to fund the purchases of mortgage loans and Islamic house financing from the domestic financial system.

“We are pleased to conclude the year with yet another successful issuances representing the company’s 26th issuance exercise which brings the aggregate issuances for the year to RM10.2 billion, marking the company’s third consecutive year surpassing RM10 billion worth of issuances,” he said in a statement today.

The six-month CCPs/ICPs are competitively priced at 3.25 per cent, 20 basis points (bps) above six-month Malaysia Treasury Bills and 17 bps above Malaysian slamic Treasury Bills, while the one-year IMTNs are competitively priced at 3.29 per ent, 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. — BERNAMA

Source: Bernama