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Treasury & Capital Markets
Malaysia’s Cagamas prints US$127 million bond
Offering attracted diversified investors, proceeds to fund purchase of house financing
The Asset 20 Jan 2023

The National Mortgage Corporation of Malaysia, Cagamas, has issued 550 million ringgit (US$127.46 million) worth of bonds and sukuk, comprising 500-million-ringgit five-year Islamic medium-term notes (IMTNs) and 50-million-ringgit five-year conventional medium-term notes (CMTNs).

Proceeds from the issuances will be used to fund the purchase of house financing and eligible assets from the domestic financial system.

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

“Despite looming uncertainty on global interest rate direction and recession concerns this year, the IMTNs were successfully concluded via a book-building exercise that allowed the company to tighten the pricing by 5 basis points with a final book to cover ratio of 3.05 times, while the CMTNs were privately placed out,” says Datuk Chung Chee Leong, Cagamas’ president and CEO. “The IMTNs attracted subscription from a diversified range of investors, including financial institutions, pension funds, asset management institutions, insurance companies and a sovereign body.”

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