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Treasury & Capital Markets
Cagamas prices 1.63 billion ringgit bonds and sukuk
Issuance successfully concluded amid tightening monetary policies
The Asset 30 Sep 2022

Cagamas, the National Mortgage Corporation of Malaysia, has priced bond and sukuk issuances amounting to 1.63 billion (US$351.2 million) in both the domestic and international markets.

The comprised 560 million ringgit one-year Islamic medium-term notes (IMTNs), 30 million ringgit one-year conventional medium-term notes (CMTNs), 40 million ringgit two-year CMTNs, 30 million ringgit three-year CMTNs, and aggregate S$300 million (US$209.2 million) one-year fixed-rate euro medium-term notes (EMTNs).

Proceeds from the issuances will be used to fund the purchase of housing loans and house financing from the financial system.

Datuk Chung Chee Leong, president and chief executive officer of Cagamas, says the issuances were concluded amid a tightening of monetary policies by major central banks, including the latest interest rate increase by the US Federal Reserve.

“Demand for Cagamas’ foreign currency bonds remain resilient amid market volatility and was fully subscribed by foreign investors, including asset managers, financial institutions and insurance companies,” Chung notes.

The SGD issuances also mark the company’s third and fourth foreign currency issuance exercise for the year and brings the year-to-date SGD-denominated issuance to S$550 million.

From the domestic market, the company raised a total of 660 million ringgit with the CMTNs and IMTNs priced at 37-46bp above the corresponding Malaysian government securities and Malaysian government investment issues.

The latest deals bring the company’s year-to-date issuance amount to 12.7 billion ringgit, Chung adds.

Cagamas will fully and unconditionally guarantee the SGD-denominated bond and CMTNs/IMTNs issuances. They will be redeemed at their full nominal value upon maturity and are unsecured obligations of the company, ranking pari passu with all its other existing unsecured obligations.

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