KUALA LUMPUR: Cagamas Bhd’s aggregate issuances of RM1.045bil received overwhelming response with a final overall book-to-cover (BTC) ratio of 2.26 times.
It said on Tuesday its aggregate issuances of RM1.045bil comprised of RM345mil three-month Islamic commercial papers (ICPs), RM300mil three-month conventional commercial papers (CCPs) and RM400mil three-year Islamic medium term notes (IMTNs).
Cagamas, which is the National Mortgage Corporation of Malaysia, said proceeds from the issuances will be used to fund the purchase of house financing and housing loans from the financial system.
Cagamas president/CEO, Datuk Chung Chee Leong said the company’s latest issuances were supported by encouraging demand from investors as the book building exercise attracted a wide and diverse base of investors.
“We are encouraged by the strong support as evidenced by the overwhelming response with a final overall book-to-cover (BTC) ratio of 2.26 times, allowing the company to tighten its IMTN yield from an initial price guidance of 2.85% to 2.78%, and registering a 42 basis points (bps) spread against the Malaysian Government Investment Issue (MGII), ” he said.
Chung said the ICPs and CCPs were priced at the corresponding three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus five basis points (bps), or equivalent to 1.99% based on KLIBOR fixing on the pricing date.
“The spread was 19bps above the corresponding Malaysian Islamic Treasury Bills/Malaysian Treasury Bills, ” he added.
With the latest issuances, Cagamas’s aggregate issuance for the year is RM4.4bil.
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 other existing unsecured obligations of the company.
They will be listed and tradable under the Scripless Securities Trading System.