Friday 29 Mar 2024
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KUALA LUMPUR (May 18): Cagamas Bhd announced today its aggregate issuance of RM1.045 billion worth of bonds comprising conventional and Islamic-compliant securities to raise money to fund the purchase of housing loans from the financial system.

In a statement today, Cagamas said the RM1.045 billion worth of bonds comprise RM345 million three-month Islamic Commercial Papers (ICPs), RM300 million three-month Conventional Commercial Papers (CCPs) and RM400 million three-year Islamic Medium Term Notes (IMTNs).

Cagamas president and chief executive officer (CEO) Datuk Chung Chee Leong said in the statement: “We are encouraged by the strong support as evidenced by the overwhelming response with a final overall book-to-cover ratio of 2.26 times, allowing the company to tighten its IMTN yield from an initial price guidance of 2.85% to 2.78%, and registering a 42 basis point (bp) spread against the Malaysian Government Investment Issue.

“The ICPs and CCPs were priced at the corresponding three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus 5bps, equivalent to 1.99% based on KLIBOR fixing on the pricing date. The spread was 19bps above the corresponding Malaysian Islamic Treasury Bills/Malaysian Treasury Bills,” Chung said.

According to Cagamas’ statement, the newly-issued RM1.045 billion worth of bonds bring its aggregate issuance for the year to RM4.4 billion. 

“The [RM1.045 billion] papers, which 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. 

"They will be listed and tradable under the Scripless Securities Trading System,” Cagamas said.

Edited ByChong Jin Hun
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