KUALA LUMPUR: Cagamas Bhd, the national mortgage corporation has cumulatively refinanced housing loans in the secondary market totalling to RM134bil in the past 30 years.
“Over the past 30 years, Cagamas has cumulatively refinanced housing loans in the secondary market equivalent to RM134bil, or the financing of 1.9 million houses, which has enabled Malaysians to own their dream homes,” CEO Datuk Chung Chee Leong said in a statement.
“We are glad to have played a role in increasing the breadth and depth of the Malaysian bond market. Cagamas’ contribution to the depth of the Malaysian capital market is reflected in the cumulative issuance of RM304.2bil corporate bonds and sukuk and today, Cagamas remains the largest issuer of corporate debt securities in Malaysia,” he added.
Cagamas has recently celebrated its 30th anniversary ceremony held in Kuala Lumpur recently. The event was graced by Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim.
Cagamas commenced operations in 1987, as part of Bank Negara Malaysia’s initiative to establish an intermediary to facilitate financial institutions in expanding their housing mortgage finance. Commercial banks then were facing maturity and interest rate mismatches in their books.
Cagamas was established to mobilise competitive long term funding at fixed interest rates to lend to financial institutions that would in turn promote home ownership. An added mandate was to help Malaysia develop its debt markets by expanding the availability of high quality and liquid corporate bonds and sukuk across the yield curve.
Cagamas also participated in the Skim Rumah Pertamaku (SRP) and Skim Perumahan Belia (SPB), initiatives taken by the Government to help young adults to own their first home.
With Cagamas’ participation in the schemes, first time home buyers are able to obtain 100% financing from financial institutions, enabling them to own a home without having the need to pay a 10% down payment.
Cagamas is now the second largest issuer of bonds and sukuk after the government and the largest corporate bond and sukuk issuer in the country. Cagamas’ bonds and sukuk continue to be assigned a strong,
Malaysia sovereign equivalent credit rating of A3 by Moody’s Investors Service and AAA by both RAM Rating Services Bhd and Malaysian Rating Corp Bhd.
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