Cagamas RM350mil debt notes yield at 3.42%


  • Business
  • Thursday, 13 Oct 2016

Association of Banks in Malaysia says first time home buyers must recognise the need to make sound decisions of their own affordability based on their financial circumstances.

KUALA LUMPUR: Cagamas Bhd (Cagamas) is issuing a two-year RM350mil in debt notes to fund the purchase of housing loans from the financial system.

Cagamas, which is the National Mortgage Corporation of Malaysia, said on Thursday that the conventional medium term notes (CMTN) was concluded at a competitive yield of 3.42%.

This was a spread of 10 bps over the two-year IRS rate.

Cagamas CEO Chung Chee Leong said this was achieved despite the uncertainty in global markets ahead of the US Presidential elections and the Federal Open Market Committee (FOMC) rate decision in November.

“The issuance displays an increase in acceptance of local currency corporate bonds and sukuk among the foreign investors, which is evidenced by the year-on-year growth in foreign holdings of Cagamas ringgit bonds from 0.6% to 7.8% as at September 2016“ he added.

Year to-date, Cagamas has issued a total of RM6.3bil in the primary market, consisting of RM4.9bil in domestic currency and RM1.4bil equivalent in foreign currencies. 

The company has also achieved secondary trading volume of RM13bil, making it the highest traded corporate bond and sukuk in the local bond market thus far – and second to Government securities.

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