KUALA LUMPUR (Dec 1): Malaysia's state-backed mortgage lender Cagamas will raise up to $2.5 billion with a multi-currency Islamic bond programme, according to statement filed to the central bank by credit agency RAM Ratings on Monday.

Cagamas, which provides liquidity to primary lenders of housing loans to promote home ownership, is Malaysia's second largest issuer of debt instruments behind the government.

This issue is Cagamas's third outside Malaysia as it taps different markets and investor bases, after raising funds with foreign currency bonds twice previously this year.

The company has stated its intention to branch out regionally, by leveraging on its experience with secondary mortgage markets.

Cagamas completed a HK$1 billion issuance in 3 1/2 year medium term notes last month, and made its overseas bond market debut in September with a 1.5 billion renminbi placing of three-year senior unsecured notes .