Cagamas concludes pricing of RM1.3bil worth of bonds, sukuk

KUALA LUMPUR: Cagamas Bhd has announced the pricing of RM1.3 billion worth of bonds and sukuk, amid soft market conditions as most investors stayed on the sidelines ahead of the United States (US) Federal Open Market Committee (FOMC) meeting.

In a statement today, the national mortgage corporation said proceeds from the issuances will be used to fund the purchase of eligible sustainability assets, housing loans and house financing from the domestic financial system.

It said the bonds and sukuk comprised RM200 million three-year ASEAN Sustainability SRI Sukuk, RM330 million two-year conventional medium term notes (CMTNs), RM200 million two-year Islamic CMTN, RM300 million three-month conventional commercial papers and SGD100 million two-year fixed rate euro medium term notes.

"The successful pricing of the issuances signaled that the company’s papers remain resilient despite volatility in the market,” said the Cagamas’ president/chief executive officer Datuk Chung Chee Leong.

He said the CMTNs were priced via a book building exercise, while the other issuances were concluded via private placements, adding that the latest issuances brought the company’s aggregate issuances for the year -to-date to RM4.3 billion.

Cagamas said the SGD denominated bonds, issued via the company’s wholly-owned subsidiary, Cagamas Global PLC are fully and unconditionally guaranteed by Cagamas.

The Ringgit denominated issuances, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking pari passu as with all other existing unsecured obligations of the company. - Bernama