Kuala Lumpur, November 12, 2024 -- Cagamas Berhad (“Cagamas” or the “Company”), the National Mortgage Corporation of Malaysia, announced it had successfully raised RM2.2 billion in October. This amount comprises RM400 million in 5-year Islamic Medium Term Notes (IMTNs), RM100 million in 1-year Conventional Medium Term Notes (CMTNs), RM575 million in Islamic Commercial Papers (ICPs), and RM150 million in Conventional Commercial Papers (CCPs). An additional SGD305 million (equivalent to RM1 billion) was issued in 1-year Singapore Dollar Medium Term Notes (SGD EMTNs) through the Company’s wholly-owned subsidiary, Cagamas Global P.L.C.
Kameel Abdul Halim, President/Chief Executive Officer of Cagamas said, “The successful conclusion of our fundraising activities in October, despite continued volatility in the local and global fixed income market, reaffirms our role as a secondary mortgage corporation in providing liquidity to primary lenders of home financing and housing loans.”
At a glance
- Company
- Cagamas Berhad
- Announcement
- Financing
- Location
- Kuala Lumpur, Malaysia
Key figures
- October fundraising
- RM2.2 billion
- Singapore Dollar Medium Term Notes issued
- SGD305 million
- Year-to-date Singapore-dollar issuance
- SGD525 million
- Total funds raised as at October 2024
- RM15.2 billion
People
- Kameel Abdul HalimPresident/Chief Executive Officer
Products and programs
Kameel added, “Demand for Cagamas' foreign currency bonds remains resilient across diverse investor profiles. The SGD issuance was fully subscribed by foreign investors, which include asset managers and financial institutions. This latest issuance has brought the cumulative SGD-denominated issuance for the year to SGD525 million, with total funds raised by Cagamas reaching RM15.2 billion as at October 2024.”
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.
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Questions around this news
What role does Cagamas play in Malaysia’s housing finance market?
Cagamas describes itself as Malaysia’s National Mortgage Corporation and says it acts as a secondary mortgage corporation. In that role, it provides liquidity to primary lenders that offer home financing and housing loans. A secondary mortgage corporation can support those lenders by purchasing or funding housing-related loans, helping them replenish funds for lending.
How was the Singapore dollar bond issuance structured?
The SGD-denominated notes were issued through Cagamas Global P.L.C., the company’s wholly owned subsidiary, and were fully and unconditionally guaranteed by Cagamas. The issuance was fully subscribed by foreign investors, including asset managers and financial institutions. The release says the company’s cumulative SGD-denominated issuance for the year reached SGD525 million.
What does it mean for obligations to rank pari passu?
Pari passu means obligations rank equally with one another, rather than one having priority over another solely under the relevant ranking terms. In a debt context, this can mean creditors share the same level of claim, subject to applicable law, security interests and the specific terms governing each obligation.
