At a glance
- Company
- Cagamas Berhad
- Announcement
- Financing
- Location
- Kuala Lumpur, Malaysia
Key figures
- Total funding raised in 2024
- RM21.31 billion
- Foreign-currency funding raised
- RM2.59 billion equivalent
People
- Kameel Abdul HalimPresident/Chief Executive Officer
Products and programs
Kuala Lumpur, January 7, 2025 -- Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, successfully concluded its funding activities for 2024, raising a total of RM21.31 billion.
The achievement comes despite a year marked by significant market volatility, influenced by Federal Reserve policy shifts and geopolitical uncertainties including the US election and tensions in the Middle East, further reaffirming its role as a key player in Malaysia's debt capital market and liquidity provider to the financial system under complex market conditions.
Kameel Abdul Halim, President/Chief Executive Officer of Cagamas said, “In a year of uncertainty and heightened market volatility, Cagamas remained committed to providing essential liquidity to the financial system. Securing RM21.31 billion in total funding underscores our strong market position, investor trust, and dedication to supporting Malaysia’s financial stability. As we navigate global challenges, we continue to be agile and responsive to evolving market needs, contributing to the resilience and stability of the financial landscape.”
Cagamas advanced its focus on social responsibility agenda in 2024, making significant strides in sustainability. The Company executed its inaugural Social Repo and issued various sustainability-related bonds and sukuk, supporting inclusive and responsible financing, setting a new benchmark in sustainable finance. These initiatives position Cagamas as a key player in driving Malaysia’s sustainable development agenda, aligned with its commitment to creating lasting societal impact and promoting responsible growth in the financial sector.
“We are grateful for the ongoing support from international investors, which highlights Cagamas' credibility and resilience in navigating a volatile market environment. This support enabled us to expand access to diverse liquidity sources by raising a total of RM2.59 billion equivalent via multiples issuances of foreign currency. Access to international liquidity pools ensures Cagamas remains well-equipped to meet the liquidity requirements of asset-selling financial institutions while maintaining a strong foothold in regional capital markets,” Kameel added.
Looking ahead, Cagamas is dedicated to strengthening the secondary mortgage market and advancing the development of the capital market in 2025 and beyond. This reinforces the Company’s role as a secondary mortgage corporation, ensuring continued liquidity for primary lenders of home financing and housing loans.
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Questions around this news
How much funding did Cagamas raise in 2024?
Cagamas reported raising RM21.31 billion in total funding during 2024. It also said it raised RM2.59 billion equivalent through multiple foreign-currency issuances, which it described as widening its access to international liquidity sources.
What sustainability-related financing did Cagamas undertake in 2024?
The release says Cagamas completed its first Social Repo and issued sustainability-related bonds and sukuk during 2024. It presents these activities as part of the company’s social responsibility and sustainability efforts, supporting inclusive and responsible financing.
What is a secondary mortgage market?
A secondary mortgage market is where mortgage loans or interests in those loans can be bought and sold after lenders originate them. This can help lenders replenish funds, manage their balance sheets and continue offering home financing, while investors gain exposure to mortgage-related assets.
What is a sukuk?
A sukuk is a certificate representing an investor’s interest in an asset, project or investment activity, structured to comply with Islamic finance principles. Unlike a conventional bond, it is generally designed around ownership interests or returns linked to underlying assets rather than interest payments.
Earlier from Cagamas Berhad
- Cagamas Raised RM2.2 Billion in October Amid Challenging Market Environments
- Cagamas Wins The Asset's Sustainable Finance Awards for Malaysia
- CAGAMAS REMAINS UPBEAT WITH SUCCESSFUL ISSUANCE OF RM960 MILLION BONDS AND SUKUK
- Cagamas and Bank Simpanan Nasional Collaborate on RM500 Million Affordable Housing Transaction
