Cagamas concludes pricing for RM150m of conventional commercial papers

Cagamas concludes pricing for RM150m of conventional commercial papers
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KUALA LUMPUR (June 22): National Mortgage Corporation Cagamas Berhad announced its issuance of RM150 million 3-month Conventional Commercial Papers (CCPs).

In a statement today, Cagamas said proceeds from the issuance will be used to fund the purchase of housing loans from the financial system.

Cagamas President/Chief Executive Officer Datuk Chung Chee Leong said the successful pricing of the CCPs evidenced investors’ continued strong demand for the company’s short term debt securities despite global financial markets bracing for uncertainty due to economic reopening, coupled with the increasing geopolitical tension, which affected investor sentiment locally.

“The CCPs were competitively priced at the corresponding 3-month KLIBOR benchmark rate plus 3 bps or equivalent to 2.31% based on KLIBOR fixing on the pricing date. The pricing of the CCPs represented 28 bps above Malaysian Treasury Bills, which was concluded via private placement basis,” said Chung.

Cagamas said the transaction marked its seventh issuance exercise for the year and brings the year-to-date (YTD) issuance amount to RM3.46 billion.

It said 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, it said.