Cagamas issuances surpass RM1.8 billion for August

KUALA LUMPUR: Cagamas Bhd, yesterday announced the conclusion of its combined issuance of RM605 million, comprising RM300 million three-month Conventional Commercial Papers (CCP) and RM305 million three-month Islamic Commercial Papers (ICP).

The national mortgage corporation said the proceeds from the issuances would be used to fund the purchase of housing loans and Islamic home financing from the domestic financial system.

“We are pleased with the successful conclusion of both CCP and ICP as it represents the company’s fourth and fifth issuance respectively for the month of August.

“This brings issuance for the this total month alone to RM 1.8 billion, which is the highest to-date in 2019,” said president/chief executive officer, Datuk Chung Chee Leong in a statement yesterday.

The conclusion of the deal brings the company’s year-todate issuance to RM5.6 billion.

Despite substantial uncertainty arising from global growth rate forecasts evidenced by a series of monetary policy easing within the region, both conventional and Islamic short term papers secured competitive pricing referenced at 15 basis points below the 3- month onshore Kuala Lumpur Interbank Offered Rate.

“The issuances were fully subscribed by financial institutions which continue to seek for short-term highgrade investment assets domestically,” added Chung. — Bernama SHORT-TERM interbank rates remained steady yesterday on Bank Negara Malaysia’s (BNM) operations to absorb surplus liquidity from the financial system.

The surplus in the conventional system declined to RM22.5 billion from RM30.16 billion yesterday morning, while in the Islamic system, it decreased to RM12.9 billion from RM15.37 billion.

Earlier yesterday, BNM issued three conventional money market tenders, two qard tenders and a Bank Negara Interbank Bills

At 4 pm, the central bank conducted a RM22.5 billion conventional money market tender and a RM11.9 billion Murabahah money market tender, both for three-day money.

The average Islamic overnight interest rate stood at 2.96 per cent, while the one-, two- and three-week rates were pegged at 3.03 per cent, 3.07 per cent and 3.12 per cent, respectively.

We are pleased with the successful conclusion of both CCP and ICP as it represents the company’s fourth and fifth issuance respectively for the month of August.

Datuk Chung Chee Leong