CAGAMAS ISSUES SHORT-TERM PAPERS TOTALLING RM545 MLN

KUALA LUMPUR, Nov 23  -- Cagamas Bhd has announced its combined issuances of RM545 million, comprising RM300 million three-month conventional commercial papers (CCPs) and RM245 million three-month Islamic commercial papers (ICPs).

President and chief executive officer Datuk Chung Chee Leong said the proceeds from the issuances will be used to fund the purchase of housing loans and house financing from the financial system.

“Global market players remain vigilant as early optimism boosted by the news of promising vaccine trials was tempered by the rising coronavirus cases and new shutdowns in many parts of the world -- which may continue to threaten the recovery from the pandemic recession.

"On the local front, the recent announcement of an improved Malaysian economy that recorded a smaller contraction of 2.7 per cent in the third quarter of 2020 and continued expectation of further improvements moving forward, will provide a positive catalyst to attract foreign inflows to the local capital markets,” he said in a statement today.

He said despite the continued downside risks on the global outlook, the national mortgage corporation had successfully priced its CCP and ICP issuances competitively at 21 bps to 24 bps, above the respective Malaysian Government Securities/ Malaysian Government Investment Issues.

The transaction marked the company’s 19th issuance exercise for the year and brings the year-to-date issuance amount to RM7.32 billion.

The papers, which will be redeemed at their full nominal value on 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.

-- BERNAMA