Cagamas Berhad, the National Mortgage Corporation of Malaysia, announced the issuance of its 3-year RM500 million Islamic Medium Term Notes (IMTNs). The IMTNs will be issued under the Islamic Commodity Murabahah structure where proceeds from the issuance will be used to fund the purchase of Islamic house financing from the financial system.
“We are pleased with the successful conclusion of the Company’s sixth IMTNs issuance this year. This brings the total IMTNs issued for YTD 2018 to RM4.3 billion, which was issued out of the existing RM40 billion MTN/IMTN local currency programme. The issuance, that was concluded via public offering, was well received at the height of the release of Malaysia’s October 2018 inflation data,” said President/Chief Executive Officer, Datuk Chung Chee Leong.
“Despite the challenging market environment, evidenced by the heightened US-China trade tension as APEC failed to reach consensus coupled with the volatility in the crude oil prices, the issuance managed to secure a competitive rate of 4.12%. This constitutes a spread of 35 basis points above the corresponding 3-year Malaysian Government Investment Issue (MGII). The conclusion of the deal brings the Company’s year-to-date issuance to RM13.9 billion,” added Datuk Chung.
The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu among themselves and with all other existing unsecured obligations of the Company. They will be listed and tradable under the Scripless Securities Trading System.
Source Salaam Gateway