Kuala Lumpur: Cagamas Bhd, the National Mortgage Corporation of Malaysia, has announced the aggregate issuance of its one year RM410 mil bonds/sukuk which comprises RM180 mil Conventional Medium Term Notes (CMTN) and RM230 mil Islamic Medium Term Notes (IMTN).
Proceeds from the issuances will be used to fund the purchase of mortgage loans and Islamic house financing from the financial system.
“We are pleased with the foreign investors' continued participation in the issuances which signify their confidence and acceptance of the local MYR-denominated issuance, and of Cagamas' papers in particular.
"We are also pleased that the Company’s proactive engagements with foreign investors and continuous initiatives to promote secondary market trading of Cagamas papers have been successful,” said Datuk Chung Chee Leong, Chief Executive Officer of Cagamas.
The renewed interest among foreign fixed income investors arises from the measures which were introduced by Bank Negara Malaysia to improve liquidity and trading activity in both the foreign exchange and bond markets as well as to strengthen the financial market’s infrastructure.
“Overwhelming response received from investors for the issuance has enabled the Company to obtain a very competitive pricing with subscriptions received from various market segments including foreign investors,” added Datuk Chung.
The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the Company, ranking pari passu among themselves and with all other existing unsecured obligations of the Company.
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