KUALA LUMPUR, Aug 10 — Cagamas Bhd, the National Mortgage Corporation of Malaysia, has announced its RM110 million issuance comprising one-year conventional medium-term notes and Islamic medium-term notes.
Proceeds from the issuances will be used to fund the purchase of housing loans and house financing from the financial system, it said in a statement today.
“The resurgence of Covid-19 infections globally, coupled with renewed US-China tensions, dominating headlines, resulted in safe-haven assets continuing to be highly sought after.
“On the domestic front, demand for fixed-income instruments remain supportive due to the easing of monetary policy and fiscal stimulus packages, coupled with benign inflation outlook,” said president/chief executive officer Datuk Chung Chee Leong.
He said the issuances were competitively priced at 2.15 per cent, 37 basis points (bps) and 35 bps above respective Malaysian Government Securities/Malaysian Government Investment Issues.
The transaction marked the company’s tenth issuance exercise for the year and brings the year-to-date issuance amount to RM4.22 billion.
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.
They will be listed and tradable under the Scripless Securities Trading System.
Cagamas was established in 1986 to promote the broader spread of home ownership and growth of the secondary mortgage market in Malaysia. — Bernama
