KUALA LUMPUR (August 8): Cagamas Berhad, the National Mortgage Corporation has successfully priced its RM1.11 billion bonds and sukuk.
In a statement on Monday (Aug 8), Cagamas said the bonds and sukuk comprised RM25 million 1-year Islamic Medium Term Notes (IMTNs), RM85 million 1-year Conventional Medium Term Notes (CMTNs), RM285 million 2-year ASEAN Social SRI Sukuk (Social SRI Sukuk), RM115 million 2-year IMTNs, RM110 million 2-year ASEAN Social Bonds (Social Bonds), RM100 million 3-year IMTNs and RM390 million 3-year CMTNs.
The company said proceeds from the issuances will be used to fund the purchase of eligible assets from the financial system.
Cagamas President/Chief Executive Officer, Datuk Chung Chee Leong said the issuances, which include Social SRI Sukuk and Social Bonds, demonstrate the company’s continued efforts to facilitate an emerging sustainable asset class and to promote the growth of a sustainable market ecosystem.
“The Company successfully priced its 2-year Social SRI Sukuk and Social Bonds at 2 bps lower than the 2-year IMTNs, recording competitive spreads of 39 to 45 bps above the corresponding Malaysian Government Securities/Malaysian Government Investment Issues for the overall issuances.
“The Social SRI Sukuk and Social Bonds for affordable housing were assigned the highest Social Benefit rating of Tier-1 by RAM Sustainability Sdn Bhd under the Cagamas’ Sustainability Bond/Sukuk Framework,” he said.
Cagamas said the latest transactions bring the company’s year-to-date issuance amount to RM10.05 billion.
It said the issuance will be redeemed at their full nominal value upon maturity and are unsecured obligations of the company, ranking pari passu with all other existing unsecured obligations of the company.