Kuala Lumpur – Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the successful conclusion of an aggregate of RM4.8 billion equivalent worth of funds raised in October, the highest funds raised in a month year-to-date. The issuances comprise an RM180 million 3-month Islamic Commercial Papers (ICPs), RM3.5 billion multi-tenured Islamic Medium Term Notes (IMTNs), RM465 million multi-tenured Conventional Medium Term Notes (CMTNs), 1-year SGD150 million (RM520 million equivalent) Medium Term Notes and RM158 million through other funding avenues. Proceeds raised from the issuances are used to fund the purchase of Islamic home financing and conventional housing loans from domestic financial institutions.

"The successful conclusion of our fund-raising activities in October albeit a period marked by global uncertainties in the fixed income market and extreme volatility arising from geopolitical tensions, reflect Cagamas’ commitment to support the domestic financial system. This underscores our role in providing liquidity to the primary lenders of home financing and housing loans as a secondary mortgage corporation," said President/Chief Executive Officer, Kameel Abdul Halim.

“Strong demand from local and foreign investors also enabled the Company to price its issuances competitively above the corresponding Malaysian Government Securities,” added Kameel.

The fund-raising activities above bring the Company’s aggregate funds raised for the year to RM24.03 billion. The SGD denominated bonds, issued via the Company’s wholly owned subsidiary, Cagamas Global P.LC. are fully and unconditionally guaranteed by Cagamas while 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.

About Cagamas

Cagamas Berhad (Cagamas), the National Mortgage Corporation of Malaysia, was established in 1986 to promote the broader spread of home ownership and growth of the secondary mortgage market in Malaysia. It issues bonds and sukuk to finance the purchase of housing loans from financial institutions and non-financial institutions.  The provision of liquidity to financial institutions at a reasonable cost to the primary lenders of housing loans encourages further expansion of financing for houses at an affordable cost.

The Cagamas model is well regarded by the World Bank as the most successful secondary mortgage liquidity facility. Cagamas is the second largest issuer of debt instruments after the Government of Malaysia and the largest issuer of AAA corporate bonds and sukuk in the market. Since incorporation in 1986, Cagamas Group has cumulatively raised funds circa RM418.49 billion worth of corporate bonds and sukuk and other funding avenues. 

Cagamas’ bonds and sukuk continue to be assigned the highest ratings of AAA/Stable/P1 by RAM Rating Services Berhad and AAA/MARC-1 and AAAIS/MARC-1IS by Malaysian Rating Corporation Berhad, denoting its strong credit quality. Cagamas is also well regarded internationally and has been assigned local and foreign currency long-term issuer ratings of A3 by Moody’s Investors Service Inc. that are in line with Malaysian sovereign ratings.

Cagamas Berhad
Registration No. 198601008739 (157931-A)
Level 32, The Gardens North Tower
Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur
www.cagamas.com.my

Media Enquiries 

Leanne Susau
communications@cagamas.com.my  

Lucia Wee
communications@cagamas.com.my