Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful pricing of its RM600 million 1-year and 3-year Islamic Medium Term Notes (IMTNs). Proceeds from the IMTNs will be used to fund the purchase of house financing from the financial system.
“The global market continues to be weighed down by the stronger prospect of monetary tightening cycles by major central banks including the US Federal Reserve in the upcoming Federal Open Market Committee (FOMC) meeting in early May. This has triggered further sell down in the bond market as yields edged higher globally and domestically. Despite the hawkish onset for rates and soft market sentiment within the domestic market, the IMTNs was well bidded and competitively priced at 39 basis points against the Malaysian Government Investment Issues. This demonstrates the resilience and confidence in the Company’s sukuk within the domestic bond market,” said President/Chief Executive Officer of Cagamas, Datuk Chung Chee Leong.
“The IMTNs deal which was concluded via a book building exercise, received interest from 18 accounts comprising insurance companies, financial institutions, asset managers, corporates, cooperatives and a statutory body,” added Datuk Chung.
The IMTNs which are the Company’s ninth issuance exercise for the year, brings the Company’s year-to-date overall issuance amount to RM6.2 billion. They 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.