Cagamas starts 2023 with issuance of RM550mln worth of bonds and sukuk


Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful conclusion of RM550 million worth of bonds and sukuk, comprising RM500 million 5-year Islamic Medium Term Notes (IMTNs) and RM50 million 5-year Conventional Medium Term Notes (CMTNs). Proceeds from the issuances will be used to fund the purchase of house financing and eligible assets from the domestic financial system.

President/ Chief Executive Officer of Cagamas, Datuk Chung Chee Leong said, “We are pleased to have started the year with commendable issuances of RM550 million worth of bonds and sukuk, despite looming uncertainty on global interest rate direction and recession concerns this year. The IMTNs were successfully concluded via a book building exercise that allowed the Company to tighten the pricing by 5 basis points (bps) with a final book to cover ratio of 3.05 times, while the CMTNs were privately placed out. The IMTNs attracted subscription from a diversified range of investors including financial institutions, pension funds, asset management institutions, insurance companies and a sovereign body.”

The papers will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu with all other existing unsecured obligations of the Company.

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