Cagamas begins 2023 with issuance of RM550m in bonds and sukuk

CAGAMAS Bhd has concluded the issuance of RM550 million worth of bonds and sukuk, comprising RM500 million five-year Islamic medium-term notes (IMTNs) and RM50 million five-year conventional medium-term notes (CMTNs).  

In a statement today, the National Mortgage Corp of Malaysia said the proceeds from the issuances will be used to fund the purchase of house financing and eligible assets from the domestic financial system.

“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,” Cagamas president and CEO Datuk Chung Chee Leong (picture) said.

Chung said the IMTNs were successfully concluded via a book-building exercise that allowed the company to tighten the pricing by five basis points 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,” he added.

The papers will be redeemed at their full nominal value upon maturity and are unsecured obligations of the company, ranking pari passu (on equal footing) with all other existing unsecured obligations of the company. — TMR