Malaysia’s national mortgage corporation Cagamas Bhd announced today the combined issuance of sukuk and bonds totalling RM2 billion, the largest amount priced by the company in a single day since November 2013.
The transaction marks the Cagamas’s 20th issuance exercise for the year and brings the year-to-date (YTD) issuance amount to RM9.32 billion.
The issuance comprises a three-month RM700 million conventional commercials papers (CCPs), RM300 million Islamic commercials papers (ICSPs), RM500 million one-year Islamic medium-term notes (IMTNs) and RM500 million one-year conventional medium-term notes (MTNs).
In a statement today, Cagamas said the proceeds from the issuance will be used to fund housing loans and house financing from the financial system.
“We are pleased with the successful conclusion of the issuance despite growing caution on the domestic front, arising from the parliamentary voting on Budget 2021, coupled with potential risk-on sentiments as global markets are buoyed by news of imminent Covid-19 vaccines,” said Cagamas president and chief executive officer (CEO) Datuk Chung Chee Leong.
“While mixed sentiments slowly descended into the fixed income space, the company managed to price its RM2 billion combined deal with its issuance of ICPs, CCPs, IMTNs and MTNs competitively at 30 basis points (bps) to 45bps, above the respective Malaysian Government Securities/Malaysian Government Investment Issues,” added Chung.
The papers, to be redeemed at 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.
Source The Edge Markets