KUALA LUMPUR (July 10): Cagamas Bhd, through its wholly-owned subsidiary Cagamas Global PLC, has issued Hong Kong Dollar Medium Term Notes (HKD MTNs) amounting to HKD310 million (RM159 million), marking the company’s first foreign currency issuance for the year.

"Carrying an issue rating of A3 by Moody’s Investor Service, the 3-year HKD100 million issuance was competitively priced at 3.17%, representing a spread of 60 basis points over the corresponding Hong Kong Mid Swap rates (MS) and was fully subscribed by foreign investors," Cagamas president and chief executive officer Datuk Chung Chee Leong said in a statement today. 

Issued under Cagamas’ USD2.5 billion Conventional Multicurrency Medium Term Note (EMTN) Programme, they mature in three years and are fully and unconditionally guaranteed by Malaysia’s National Mortgage Corporation.  

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 of its other existing unsecured obligations. The term notes will be listed and tradable under the Scripless Securities Trading System.  

"We are pleased with the conclusion of the deal, as it represents the company’s second issuance and revival within the HKD space. The deal also signifies continued foreign investor confidence in the company’s credit strength, post the recent Malaysian 14th General Elections," Chung said. 

He added that the company managed to generate interest from Hong Kong Dollar investors for its papers, through its proactive investor engagements and reverse inquiry initiatives, which eventually led to the deal's conclusion.