CAGAMAS CONCLUDES RM1 BLN BONDS AND NOTES ISSUANCE

KUALA LUMPUR, July 18 (Bernama) -- Cagamas Bhd, the national mortgage corporation, has concluded a combined bonds and notes issuance worth RM1 billion.

These comprised RM700 million of one-year fixed rate conventional medium term notes (CMTN), RM200 million three-month conventional commercial papers (CCP), and RM100 million one-year floating rate conventional medium term notes (FRN).

"Proceeds from the issuances will be used to fund the purchase of housing loans from the financial system," it said in a statement today.

President and chief executive officer Datuk Chung Chee Leong said the RM700 million CMTN issuance was concluded via reopening of an existing bond tranche, which marked the company’s first reopening exercise for the year. 

"The outstanding bond, which has a remaining maturity of one year and an outstanding amount of RM50 million, was successfully upsized to RM750 million, post-reopening exercise," he said.

On the RM200 million CCP, Chung said it was concluded via public offering which recorded a commendable bid-to-cover ratio of 2.6 times and competitively priced at 10 basis points below the corresponding three-month Kuala Lumpur Interbank Offer Rate (KLIBOR). 

Meanwhile, the RM100 million one-year FRN was priced at par with the three-month KLIBOR and represented the company’s first FRN issued for the year, he said.

"The concluded FRN also marked the first floating rate note issuance within the domestic AAA-rated segment and further underscores Cagamas's ability in diversifying its funding options to a wider pool of investors," said Chung.

Cagamas said both the CCP and FRN were strategically priced post-Bank Negara Malaysia's announcement on July 9 that the overnight policy rate would remain unchanged at three per cent.

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

-- BERNAMA