Cagamas concludes pricing for RM945m of bonds, sukuk

KUALA LUMPUR, Feb 22 — Cagamas Bhd has just issued RM945 million worth of bonds and sukuk, bringing the company’s aggregate issuance for the year to RM1.7 billion.

The national mortgage corporation said the latest issuances comprised RM245 million three-month Islamic commercial papers (ICPs), RM300 million three-month conventional commercial papers (CCPs) and RM400 million one-year conventional medium term notes (CMTNs).

“Proceeds from the issuances will be used to fund the purchase of house financing and housing loans from the financial system,” it said in a statement today.

President and chief executive officer Datuk Chung Chee Leong said fixed income investors turned cautious, weighing in the downside risk stemming from ongoing uncertainties in the near term even as optimism for an economic recovery rose due to the increased rollout of Covid-19 vaccinations coupled with more opening up of economic activities.

“Notwithstanding, demand for short-term papers remain well-supported as evidenced by the successful conclusion of our ICPs, CCPs, and CMTNs issuances,” he said in the statement.

The papers, which will be redeemed at their full nominal value on maturity, are unsecured obligations of the company, ranking pari passu and with all other existing unsecured obligations of the company. They will be listed and tradable under the Scripless Securities Trading System. — Bernama

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