Kuala Lumpur: Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful pricing of its RM300 million 1-year Floating Profit Rate Islamic Medium Term Notes (IMTNs). The proceeds from the IMTNs will be used to fund the purchase of house financing from the financial system. The transaction also represents the Company’s first IMTNs with floating rate mechanisms since June 2014.
“The successful conclusion of the Company’s IMTNs represent the Company’s ongoing efforts in developing onshore capital markets through the issuance of diversified structures, catering to market needs in current interest rate environment that contributes positively to the depth and breadth of the domestic sukuk market,” said Datuk Chung Chee Leong, President/Chief Executive Officer of Cagamas.
The IMTNs, with its floating rate mechanism, were attractive to investors as they provide potential higher returns amid rising interest rate environment - were successfully priced via private placement at the corresponding 3-month Kuala Lumpur Interbank Offered Rate (KLIBOR) or equivalent to 2.12% based on KLIBOR fixing on the pricing date. The new issuance brings the Company’s aggregate issuances for the year to RM5.6 billion.
The IMTNs 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.