KUALA LUMPUR (July 30): Cagamas Bhd, the National Mortgage Corp of Malaysia, has concluded its first RM50 million three-month social repurchase agreement with a local financial institution.

Additionally, it issued RM100 million of its two-year Asean Sustainability Bond and RM290 million of its three-month and six-month Islamic Commercial Papers (ICPs) with Asean Social SRI Sukuk status, according to its statement on Tuesday.

In a note on Tuesday, it was highlighted that the social repurchase agreement is a bespoke arrangement for the company whereby proceeds raised from the transaction will be used to purchase small and medium enterprises (SME) loans.

This qualifies as an eligible asset under the Cagamas Sustainability Bond/Sukuk Framework.

“The transaction represents another step forward in the company’s efforts to anchor industry-led sustainability initiatives within the financial sector," it noted.

Meanwhile, the issuance of RM145 million each for the three-month and six-month Asean Social SRI Sukuk was the company’s first short-term Islamic debt securities offering.

Cagamas also said: “This encompasses its deep commitment to providing socially responsible investment opportunities."

Kameel Abdul Halim emphasised that "these transactions underscore our on-going efforts to foster a sustainable and inclusive financial ecosystem".

These are “critical steps in our journey to drive meaningful social change through innovative financial solutions”, he further reinforced.

To date, the company has raised RM10 billion through the issuance of bonds, sukuk and other funding sources, it said.