The National Mortgage Corp of Malaysia, or Cagamas Bhd, has issued a RM825 million 1-year bond and sukuk comprising RM800 million Conventional Medium Term Notes (CMTN) and RM25 million Islamic Medium Term Notes (IMTN). The proceeds will be used to fund the purchase of mortgage and Islamic home loans from the financial system, according to The Edge Markets.
With the issuance of the bond and sukuk, the aggregate primary issuance by Cagamas has reached RM9.3 billion for 2018. This marks a 24% increase in the company’s primary supply as compared to 2017’s year-to-date total of RM7.5 billion.
President and CEO Datuk Chung Chee Leong said the CMTN issue was concluded via reopening of an existing bond tranche. This marked the company’s second reopening exercise for the year.
“The outstanding bond has a remaining maturity of one year and an outstanding amount of RM200 million which was successfully upsized to RM1.0 billion post the reopening exercise,” he said, noting the notes marked Cagamas’ 16th issuance exercise for the year.
The CMTN and IMTN, which will be redeemed at their full nominal value on maturity, are unsecured obligations of Cagamas. They are ranked pari passu among all other existing unsecured obligations of the company and will be listed and traded under the Scripless Securities Trading System.