Cagamas and Bank Simpanan Nasional Collaborate on RM500 Million Affordable Housing Transaction

Kuala Lumpur, November 30, 2023 -- Cagamas Berhad ("Cagamas" or “the Company”), the National Mortgage Corporation of Malaysia, and Bank Simpanan Nasional ("BSN" or "the Bank") today announced the successful conclusion of an affordable housing transaction worth a total of RM500 million. The transaction was funded by the issuance of Cagamas’ multi-tenured ASEAN Social Sustainable and Responsible Investment Sukuk (“SRI Sukuk”), comprising RM150 million 1-year, RM100 million 2-year, and RM250 million 3-year SRI Sukuk, issued under Cagamas’ RM60 billion Conventional Medium Term Notes and Islamic Medium Term Notes programme (“CMTN/IMTN Programme”).

BSN’s commitment of RM500 million will be strategically utilised to support affordable housing initiatives, primarily focusing on the financing aspect. This strategic allocation aligns with BSN’s vision of fostering positive social change and contribution, and its unwavering dedication to sustainability.

"BSN recognises the critical role financial institutions play in addressing societal challenges, particularly in the context of affordable housing. Our substantial commitment to sustainable and responsible investments underscores our dedication to supporting the development of affordable housing solutions, and we believe that this initiative will contribute to a more sustainable and resilient future for all," said Jay Khairil, Chief Executive of BSN.

Kameel Abdul Halim, President/ Chief Executive Officer of Cagamas, said, “This collaboration with BSN demonstrates our shared commitment of making home ownership accessible for all Malaysians. Improving access to affordable housing is a crucial component of Cagamas’ sustainability goals and we are proud to partner with BSN to achieve this outcome.” Cagamas remains committed to supporting the financial industry in their sustainability agenda by mobilising capital market funding for sustainability-related initiatives," Kameel added further.

The affordable housing transaction, comprising BSN's home financing facilities namely Youth Housing Scheme (YHS) and Skim Rumah Pertamaku (SRP), has successfully met Cagamas' eligibility criteria for affordable housing. Cagamas’ SRI Sukuk, which is assigned a Social Benefit rating of Tier 11 by RAM Sustainability Sdn Bhd, attracted a diversified pool of investors, including institutional investors, banks, and a statutory body, which enabled Cagamas to price its issuances competitively above the corresponding Malaysian Government Securities.

Commenting on the SRI Sukuk issuance, Kameel added, "The issuance reflects resilience in our papers against persisting concerns stemming from global market conditions and economic uncertainties.”

To date, Cagamas has cumulatively issued RM3.4 billion worth of sustainability-related bonds and Sukuk under its CMTN/IMTN Programme.

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