KUALA LUMPUR (April 13): Cagamas Bhd, the national mortgage corporation of Malaysia, announced its issuance of RM300 million three-month Islamic Commercial Papers (ICPs) to fund the purchase of house financing from the financial system.
Cagamas president and chief executive officer Datuk Chung Chee Leong said: “We are pleased with the conclusion of the company’s latest issuance which saw continued buying of our short-term papers on the back of positive news flow from the retainment of Malaysia on the World Government Bond Index (WGBI) Index. This news bodes well for the local fixed income market.”
“The ICPs were priced at the corresponding three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus 6 basis points (bps), or equivalent to 2% based on KLIBOR fixing on the pricing date. The spread was 21 bps above the corresponding Malaysia Islamic Treasury Bills,” added Chung.
The new issuance brings the company’s aggregate issuance for the year to RM3.35 billion, Cagamas noted.
It added that the papers, which will be redeemed at their full nominal value upon 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.