CAGAMAS ANNOUNCES ISSUANCE OF IMTN, CCP WORTH RM450 MLN

KUALA LUMPUR, Dec 21 -- Cagamas Bhd has announced the aggregate issuances of RM50 million two-year Islamic Medium Term Notes (IMTNs) and RM400 million three-month Conventional Commercial Papers (CCPs).

President/chief executive officer Datuk Chung Chee Leong said this is the company's 22nd issuance exercise, bringing its total aggregate issuances from bonds and sukuk for the year to RM11.7 billion.

He said proceeds from the issuances would be used to fund the purchase of house financing and housing loans from the financial system, noting that the move marked the company's fourth year of surpassing RM10 billion worth of issuances.

“It has been an eventful year with many unprecedented twists and turns.

“Economic turmoil associated with the COVID-19 pandemic has had a wide-ranging and severe impact on financial markets globally,” he said in a statement today.

He said domestically, the Malaysian financial market remained resilient and continued to function efficiently, despite the challenging global economic environment.

“The company remains vigilant during this period and will strive to navigate the impact of the pandemic through many efforts of reinvention, accelerating digital transformation and implementing various agile operating procedures to mitigate disruptions from the pandemic,” said Chung.

He said Cagamas remains committed in its continuous efforts to fulfill its mandate as a financial intermediary between the capital market and the Malaysian housing sector.

The  IMTNs was priced at a spread of 41 basis points (bps) above the corresponding Malaysian Government Investment Issues (MGII). 

Meanwhile, the CCPs were priced at the corresponding three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) benchmark rate, plus two bps or equivalent to 1.96 per cent based on KLIBOR fixing on the pricing date, representing 26 bps above the Malaysian Treasury Bills.

The papers, which would be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking pari passu with all other existing unsecured obligations of the company.

They would be listed and tradable under the Scripless Securities Trading System.

-- BERNAMA