KUALA LUMPUR, May 2 — Malaysia Building Society Bhd (MBSB) and Cagamas Bhd (Cagamas) inked master agreements under the purchase-with-recourse scheme, MBSB’s third fund-raising exercise with the national mortgage corporation in its effort to support its business expansion plans.
Its President and chief executive officer, Datuk Zaini Othman said, “This collaboration will help strengthen MBSB’s balance sheet position and strategically support the growth of our financing assets. The programme will also enable MBSB to strengthen its liquidity management and provide us with access to competitively-priced funding.”
Ahmad Zaini added that this fund-raising exercise will be using MBSB’s mortgage receivables as the underlying assets, enabling MBSB to maintain its strong asset quality via sound liability management strategies focused on prudent and innovative financing packages that are in line with Bank Negara’s responsible financing guidelines.
“The liquidity generated from this initiative allows MBSB to diversify its funding platforms and will further assist the company’s plan to increase asset growth in the corporate segment, especially in infrastructure and property development projects.”
As of 31 December 2013, MBSB recorded a cumulative annual growth rate (CAGR) of 76.77 per cent and expects to sustain this upward trend in the coming years. Its group profit before tax (PBT) as at 31 December 2013 stood at RM932 million.
Cagamas Bhd’s President and chief executive officer, Chung Chee Leong said: “We are pleased to mark this new phase in our initiatives with MBSB whereby Cagamas may now purchase housing loans and home financing directly from MBSB on a ‘with recourse basis’.”
Chung added that this new initiative is an extension to the maiden transaction between Cagamas and MBSB in 2009 where Cagamas purchased housing loans from MBSB under a back-to-back arrangement via intermediary commercial banks. The distinction between this new initiative and the previous initiative is that the housing loans were purchased indirectly from MBSB via intermediary banks, namely Maybank, Affin Bank, and EON Bank.
