Cagamas issues RM1.55 bln bonds and sukuk

KUALA LUMPUR: The national mortgage corporation, Cagamas Bhd, has issued RM1.55 billion bonds and sukuk to raise funds to buy mortgage loans and Islamic home financing from the financial system.

The latest transactions, comprising RM800 million three-year conventional medium-term notes (CMTNs) and RM750 million threeyear Islamic medium-term notes (IMTNs), brought the company’s year-to-date issuance to a total of RM12.3 billion, it said in a statement yesterday.

President and chief executive officer, Datuk Chung Chee Leong, said the year had thus far seen consistent monthly issuances up to October, with this latest issuance exercise being the 19th for 2018.

“Both the three-year CMTNs and IMTNs obtained aggressive bids and successfully secured a competitive weighted average price of 4.09 per cent, representing a spread of 49 basis points against the corresponding three-year Malaysian Government Securities (MGS),” he said.

Chung said the aggregate RM1.55 billion three-year tenured CMTNs and IMTNs were concluded through book-building exercises, which drew participation from a diversified group of investors including sovereign wealth funds and foreign asset managers.

So far this year, Cagamas has issued RM4.8 billion CMTNs, RM3.8 billion IMTNs, a combined RM3.0 billion short-term conventional and Islamic commercial papers, and RM650 million equivalent in foreign currency- denominated bonds. — Bernama