Cagamas concludes RM100mln 3-year sukuk ahead of fomc meeting – ZAWYA

The proceeds from the IMTNs will be used to fund the purchase of house financing from the financial system
Kuala Lumpur – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful pricing of its RM100 million 3-year Islamic Medium Term Notes (IMTNs). The proceeds from the IMTNs will be used to fund the purchase of house financing from the financial system.
“The transaction was successfully priced ahead of the widely expected further interest rate hike by the Federal Reserve (the Fed) in its efforts to contain inflation. The Fed later announced an increase of 75 basis points (bps) in interest rate, the largest increase since 1994. With the Company’s sukuk latest pricing, we are encouraged by the Company’s issuance performance thus far, which registers a total of RM7.3 billion worth of bonds and sukuk,” said President/ Chief Executive Officer, Datuk Chung Chee Leong.
“Despite a challenging market environment, the Company’s sukuk continued to garner interest from investors which demonstrates their confidence and support for the Company. The issuance was concluded via private placement and competitively priced at 40 bps above the corresponding Malaysian Government Investment Issues,” added Datuk Chung.
The sukuk will be redeemed at their full nominal value upon maturity, and are unsecured obligations of the Company, ranking pari passu with all other existing unsecured obligations of the Company.
About Cagamas
Cagamas Berhad (Cagamas), the National Mortgage Corporation of Malaysia, was established in 1986 to promote the broader spread of home ownership and the 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 the 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 has cumulatively issued circa RM366 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

© Press Release 2022
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.


Leave a Reply

Your email address will not be published. Required fields are marked *