KUALA LUMPUR, Aug 24 — Cagamas Bhd has announced its aggregate issuance of RM1.005 billion, comprising six-month Conventional Commercial Papers (CCPs), three-month CCPs and three-month Islamic Commercial Papers (ICPs).
In a statement, the national mortgage corporation said proceeds from the issuance would be used to fund the purchase of housing loans and house financing from the financial system.
President/chief executive officer Datuk Chung Chee Leong said Bank Negara Malaysia (BNM) recently announced Malaysia’s gross domestic product (GDP) largest ever contraction of 17.1 per cent in the second quarter of 2020, reflecting the unprecedented impact from the stringent containment measures to control the Covid-19 pandemic.
“The overall 2020 gross domestic product (GDP) estimate has also been revised lower to -5.5 per cent from -3.5 per cent. With the downward revision, the pandemic situation onshore and government’s ability to use fiscal measures to boost growth will be key developments for further direction.
“While the market remains cautious over uncertainties ahead, the company has successfully priced its CCPs and ICPs issuances competitively at 21 basis points (bps) to 36 bps, above respective Malaysian Government Securities (MGS)/Malaysian Government Investment Issues (MGII),” he added.
The transaction marks the company’s 12th issuance exercise for the year and brings the year-to-date issuance amount to RM5.22 billion.
The papers, which would 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 and they would be listed and tradable under the Scripless Securities Trading System. — Bernama
