KUALA LUMPUR (Dec 1): Cagamas Bhd has announced the issuances of RM4 billion in bonds and sukuk within a single month, which will be used to fund the purchase of eligible sustainability assets, housing loans and Islamic home financing from the financial system.
The National Mortgage Corporation of Malaysia said on Wednesday that the issuance includes RM345 million three-month Islamic commercial papers (ICPs), RM400 million three-month commercial papers (CCPs) and RM100 million multi-tenured ASEAN sustainability bonds (sustainability bonds).
Another RM380 million multi-tenured conventional medium term notes (CMTNs), RM1.6 billion multi-tenured Islamic medium term notes (IMTNs) as well as US$268 million (RM1.13 billion) one- and two-year fixed rate euro medium term notes (EMTNs) were also included in the issuance, said Cagamas, adding that the abovementioned bonds and sukuk were issued through its wholly-owned subsidiary Cagamas Global PLC.
The new issuances bring Cagamas’ aggregate issuance for the year to RM17.2 billion, the highest since 2008.
Cagamas president cum chief executive officer Datuk Chung Chee Leong said the company’s continuous efforts to tap the foreign currency markets while maintaining its presence in the domestic market, contributed to the successful conclusion of the transactions, underlining its continued capability to provide competitive funding to onshore financial institutions.
The US dollar issuances mark the company’s second foreign currency pricing exercise for the year and bring the total foreign currency issued year-to-date (YTD) to an equivalent of RM1.9 billion or 11% of all issuances concluded by Cagamas YTD, he noted.
Cagamas said the US dollar-denominated bonds issued via the Cagamas Global are fully and unconditionally guaranteed by Cagamas.
Meanwhile the ringgit 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, it added.