KUALA LUMPUR, June 30 — Cagamas Bhd, the national mortgage corporation of Malaysia, has concluded the pricing of its RM50 million one-year Conventional Medium Term Notes (CMTNs), RM50 million two-year CMTNs and RM150 million three-year Asean Social SRI Sukuk (SRI Sukuk).
In a statement today, Cagamas said the proceeds from the CMTNs and SRI Sukuk would be used to fund the purchase of housing loans and eligible affordable house financing from the financial system.
Chief executive officer Datuk Chung Chee Leong said the pricing of the one-year and two-year CMTNs were concluded at 48 basis points (bps) and 49 bps above the corresponding Malaysian Government Securities while the three-year SRI Sukuk was concluded at 45 bps above the Malaysian Government Investment Issue.
"As the market continues to weigh between the acceleration of monetary policy tightening, the fear of such actions may increase the probability of a recession,” he said.
He said this has contributed to the continued volatility in the fixed income market.
"Domestic investors, looking for safe harbour in this uncertain period, led to the successful pricing of the company’s issuances,” he said.
The issuances, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking pari passu with all other existing unsecured obligations of the company. — Bernama