KUALA LUMPUR (May 7): Malaysia’s national mortgage corporation Cagamas Bhd said it has raised RM1.41 billion in the second quarter on the back of strong investor interest and market conditions.

The transaction was significantly upsized from an initial combined target size of RM500 million, which was oversubscribed more than six times, Cagamas said in a statement on Thursday. After the expansion, orders still came in more than three times the amount on offer, the company noted.

“This issuance enhances our capacity to provide liquidity to financial institutions, supporting the growth of the secondary mortgage market and contributing to broader mission of promoting sustainable home ownership accessibility,” said Kameel Abdul Halim, president of Cagamas.

Cagamas, which issues bonds and sukuk to finance the purchase of housing loans from financial institutions and non-financial institutions, is the second-largest issuer of debt instruments in Malaysia after the government.

The recently-concluded issuance saw strong participation from financial institutions, asset managers, insurance companies and foreign investors, Cagamas noted, even as the geopolitical conflict in the Middle East was in full swing.

“The depth and diversity of participation reflect our investors’ continued confidence in Cagamas’ credit strength, disciplined funding approach and our role as a steadfast liquidity provider to the Malaysian financial system,” Kameel added.

The next issuances are scheduled for July and October, according to its auction calendar.