KUALA LUMPUR (May 24): Cagamas Bhd achieved an order book of more than RM2 billion for its RM375 million Islamic bonds, the proceeds from which, will fund the purchase of Islamic property loans from financial institutions.

In a statement today, Cagamas said the three year Islamic medium term notes (IMTN) recorded a bid-to-cover ratio of 5.4 times.

Cagamas president and chief executive officer Chung Chee Leong said in the statement that the issuance achieved an order book of more than RM2 billion, despite a half-day offering.

"The final yield of 3.95% was competitively priced 62 basis points over Government securities with similar tenure.

"The issuance received strong demand from various market segments and attracted participation from new foreign investors, which reflects the strength and diversity of the order book, demonstrating continued market confidence in the Company’s credit strength,"  Chung said.

According to Cagamas, the RM375 million IMTN is its sixth issuance for this year. Cagamas said the IMTN, which would be redeemed at full nominal value upon maturity, were unsecured obligations of the company.