KUALA LUMPUR (April 13): Cagamas Bhd has priced its RM300 million one-year Floating Profit Rate Islamic Medium Term Notes (IMTNs).

In a statement on Wednesday (April 13), the national mortgage corporation said the proceeds from the IMTNs will be used to fund the purchase of house financing from the financial system.

It said the transaction also represents the company’s first IMTNs with floating rate mechanisms since June 2014.

Cagamas president/chief executive officer Datuk Chung Chee Leong said the conclusion of the IMTNs represent the company’s ongoing efforts in developing onshore capital markets through the issuance of diversified structures, catering to market needs in current interest rate environment that contributes positively to the depth and breadth of the domestic sukuk market.

He said the IMTNs, with its floating rate mechanism, were attractive to investors as they provide potential higher returns amid rising interest rate environment, and were successfully priced via private placement at the corresponding three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) or equivalent to 2.12% based on KLIBOR fixing on the pricing date.

Cagamas said the new issuance brings the company’s aggregate issuances for the year to RM5.6 billion.

It said the IMTNs will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking pari passu with all other existing unsecured obligations of the Company.