Cagamas prices over RM3b worth of sukuk and bonds ahead of MPC meeting

• “Demand for Cagamas’ domestic and foreign currency bonds and sukuk remains resilient amid market uncertainties with the continued support by the local and foreign investors which include asset managers, financial institutions, insurance companies as well as statutory bodies.”

KUALA LUMPUR (Nov 1): National mortgage corporation Cagamas Bhd has successfully priced RM3.3 billion sukuk and bonds, taking the company’s year-to-date issuances from both domestic and international markets to RM16.1 billion.

In a statement on Tuesday (Nov 1), Cagamas said the bond and sukuk comprised RM500 million three-year Asean social sustainable and responsible investment (SRI) sukuk, RM300 million three-year Asean social bonds, RM2.3 billion combined multi-tenured Islamic medium term notes (IMTNs) and one-year Singapore dollar-denominated S$65 million (RM218 million equivalent) fixed rate euro medium term notes (EMTN).

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

Cagamas president and chief executive officer Datuk Chung Chee Leong said Cagamas concluded the issuances of RM3.3 billion worth of bonds and sukuk from both domestic and international markets despite market expectations of further monetary policy tightening in the upcoming Federal Open Market Committee Meeting (FOMC) and Monetary Policy Committee (MPC) meeting this week.

“Demand for Cagamas’ domestic and foreign currency bonds and sukuk remains resilient amid market uncertainties with the continued support by the local and foreign investors which include asset managers, financial institutions, insurance companies as well as statutory bodies,” said Chung.

He added the issuances above bring the company’s year-to-date issuances from both domestic and international markets to RM16.1 billion.

The Singapore dollar-denominated issuance also marks the company’s fifth foreign currency issuance exercise for the year and brings the year-to-date Singapore dollar-denominated issuances to S$615 million.

The Singapore dollar-denominated bonds, issued via the company’s wholly owned subsidiary Cagamas Global Plc, are fully and unconditionally guaranteed by Cagamas.

The ringgit issuances, 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 of the company.