KUALA LUMPUR, Nov 22 (Bernama) -- Cagamas Bhd has announced its combined issuances totalling RM705 million, comprising RM100 million multi-tenured 1.0-year and 1.5-year Conventional Medium Term Notes (CMTNs), RM300 million 3.0-month Conventional Commercial Papers (CCPs) and RM305 million 3.0-month Islamic Commercial Papers (ICPs).
Proceeds from the issuances will be used to fund the purchase of housing loans and Islamic home financing from the domestic financial system, Cagamas, the National Mortgage Corporation of Malaysia, said in a statement today.
President/chief executive officer Datuk Chung Chee Leong said the RM100 million 1.0-year and 1.5-year CMTNs were concluded via reopening of two existing bond tranches, which marked the company’s first dual reopening exercise for the year.
“The bonds with an outstanding amount of RM75 million and RM25 million were successfully upsized to RM135 million and RM65 million, respectively, post-reopening exercise. The conclusion of the deal was part of the company’s on-going initiatives and continued commitment in promoting secondary liquidity in the domestic market,” he said.
Positive market sentiments arising from Bank Negara Malaysia’s recent announcement of a cut in its Statutory Reserve Requirement from 3.5 to 3.0 per cent have resulted in the pricing of Cagamas’ combined issuances of RM300 million 3.0-month CCP and RM305 million 3.0-month ICP at a competitive pricing level of 3.0 basis points below the corresponding three months Kuala Lumpur Interbank Offered Rate (KLIBOR) benchmark rate or equivalent to 3.34 on pricing date, he added.
Cagamas said the conclusion of the deals brings the company’s year-to-date issuance to RM7.4 billion.
“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,” it said.