Cagamas announces combined issuances of short-term papers worth RM600m


NATIONAL mortgage corporation, Cagamas Bhd, has announced the combined issuances of its RM600 million short-term papers, comprising RM300 million three-month Islamic Commercial Papers (ICPs) and RM300 million Conventional Commercial Papers (CCPs).

President/chief executive officer Datuk Chung Chee Leong said proceeds from the issuances will be used to fund the purchase of house financings and housing loans from the financial system.

“We are pleased with the success of the issuances, given the uncertainties in the market environment.

“Market players continue to gauge the economic impact due to the recent resurgence of COVID-19 cases and the subsequent Conditional Movement Control Order enforced in targeted areas within the country, coupled with renewed anticipation for further rate cuts at the upcoming Bank Negara Malaysia’s Monetary Policy Committee meeting next month,” he said in a statement today.

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.

He said they will be listed and tradable under the Scripless Securities Trading System.

“Despite cautious market sentiments, the company has successfully secured strong interest from the market for its short-term papers and priced its ICPs and CCPs issuances competitively at 22 basis points (bps) and 32 bps, respectively, above the Malaysian Islamic Treasury Bills and Malaysian Treasury Bills,” he said.

He added that the transactions marked Cagamas’ fifteenth and sixteenth issuance exercise for the year, bringing its year-to-date issuance amount to RM6.23 billion.