Cagamas concludes issuance of RM200m Islamic MTNs

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KUALA LUMPUR: Cagamas Bhd has concluded its issuance of RM200mil five-year Islamic medium term notes (IMTNs) amid the nationwide Movement Controls Order (MCO) 3.0.

The National Mortgage Corporation of Malaysia said proceeds from the issuance will be used for the company’s working capital purposes.

Cagamas president/CEO Datuk Chung Chee Leong said: “We are pleased with the successful pricing of this issuance amid stricter measures implemented nationwide for the MCO3.0, following the rise in Covid-19 cases in recent weeks.

“While the local bond market sentiment improved as evidenced by buying activities, the impact on growth remains uncertain post-MCO 3.0.”

Chung said the RM200mil issuance was concluded via private placement, registering a commendable 48 basis points spread against the Malaysian Government Investment Issues.

He said the new issuance brings the Cagamas’s aggregate issuances for the year to RM6.1bil.

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

They will be listed and tradable under the Scripless Securities Trading System.



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