Cagamas kicks off 2021 with bond, sukuk issuances worth RM710m

Cagamas kicks off 2021 with bond, sukuk issuances worth RM710m
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KUALA LUMPUR (Jan 19): Cagamas Bhd has launched bonds and sukuk with aggregate issuances of RM710 million to fund the purchase of house financing, housing loans and industrial hire purchases from the financial system.

Its president and chief executive officer (CEO) Datuk Chung Chee Leong said the issuances comprised RM300 million Islamic commercial papers (ICPs), RM300 million conventional commercial papers (CCPs), RM55 million one-year conventional medium-term notes (CMTNs) and RM55 million three-year CMTNs. 

“We are excited to start the year with the successful conclusion of transactions despite headwinds on multiple fronts, arising from the continued surge of Covid-19 cases which resulted in another movement control order (MCO) and the state of emergency declaration by the government, fuelling growing uncertainty over expectations of a strong domestic economic recovery,” he said.

He pointed out that these transactions had indicated continued confidence in Cagamas papers, supported by a strong and resilient domestic bond market.

Both ICPs and CCPs were competitively priced at the corresponding three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) minus two basis points (bps) or equivalent to 1.92% on KLIBOR fixing on the fixing date, representing 19bps spread above the corresponding Malaysian Islamic Treasury Bills. 

The CMTNs were priced at a spread of 37bps and 52bps above the corresponding Malaysian Government Securities (MGS). 

The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking pari passu and with all its other existing unsecured obligations.

They will be listed and tradable under the Scripless Securities Trading System.