In brief
Cagamas Berhad says it received the Islamic Issuer of the Year – Quasi-Sovereign Award for the seventh consecutive year at the Asset Triple A Islamic Finance Awards 2023. Its 300-million-ringgit commodity Murabaha sukuk was recognized as Best ASEAN Social SRI Sukuk in the Best in Sustainable Finance and Best Country Deal categories. The awards also included a Lifetime Achievement Award for Cagamas President and CEO Datuk Chung Chee Leong. The company says its sustainability-related issuance has reached RM2.6 billion cumulatively since 2020. Chung said the recognition reflects the company’s work in Islamic finance and its efforts to develop solutions for clients. Cagamas is Malaysia’s National Mortgage Corporation and says it funds purchases of housing loans by issuing bonds and sukuk.
Key takeaways
- Cagamas received the Islamic Issuer of the Year – Quasi-Sovereign Award for the seventh consecutive year.
- Its 300-million-ringgit commodity Murabaha sukuk won recognition in sustainable finance and country deal categories.
- Cagamas CEO Datuk Chung Chee Leong received a Lifetime Achievement Award.
- The company says it has issued RM2.6 billion in ASEAN sustainability bonds and ASEAN SRI sukuk since 2020.
Kuala Lumpur, August 17, 2023 -- Cagamas Berhad (“Cagamas”/ “the Company”), the National Mortgage Corporation of Malaysia, was accorded the esteemed Islamic Issuer of the Year - Quasi-Sovereign Award for the seventh consecutive year, as well as the Best ASEAN Social SRI Sukuk in the categories of Best in Sustainable Finance and Best Country Deal (for Cagamas’ 300-million-ringgit commodity Murabaha sukuk) at the Asset Triple A Islamic Finance Awards 2023 (“the Asset”), today. The Asset also honoured Cagamas’ President/Chief Executive Officer, Datuk Chung Chee Leong, with the Lifetime Achievement Award.
Datuk Chung Chee Leong, President, Chief Executive Officer, Cagamas Berhad - Lifetime Achievement Award
Cagamas team at The Asset Triple A Islamic Finance Awards 2023 with this year's awards - Islamic Issuer of the Year - Quasi-Sovereign Award, Best ASEAN Social SRI Sukuk in the categories of Best in Sustainable Finance and Best Country Deal (for Cagamas’ 300- million-ringgit commodity Murabaha sukuk)
The Asset acknowledged that 2022 was yet another landmark year for Cagamas where it had significantly advocated for Islamic finance and commended the Company for its consistent contribution to the Malaysian sukuk market. Under the guidance of Datuk Chung, Cagamas has evolved into a savvy and prolific issuer in the Malaysian sukuk landscape, with a successful entry into the international sukuk market and delivering on its commitment to advancing sustainability objectives. Notably, Cagamas has issued a cumulative total of RM2.6 billion worth of ASEAN sustainability bonds and ASEAN SRI sukuk since 2020.
“The conferment of these prestigious awards reaffirms Cagamas’ regional leadership position in the Islamic finance space. With the continued support of our stakeholders, we remain determined to promote the adoption of new and evolving Islamic finance products and structures, within the mainstream financial system in Malaysia and beyond,” said Datuk Chung.
On winning the Lifetime Achievement Award, Datuk Chung added, “I am deeply humbled and greatly honoured to accept this significant accolade, one that recognises the commitment and combined efforts of our Board members and proficient team. This award stands as a testament to our ongoing endeavours in formulating solutions that effectively cater to the requirements of our clients.
The Asset Triple A Islamic Finance Awards are given out to the best Islamic banks and houses, as well as deals that defined the industry. The Asset adopts a rigorous approach - both quantitative and qualitative - and the winners are selected by The Asset's Board of Editors and the Asset Benchmark Research team, who collectively have decades of experience in evaluating awards in Asia.
About Cagamas
Cagamas Berhad (Cagamas), the National Mortgage Corporation of Malaysia, was established in 1986 to promote the broader spread of home ownership and growth of the secondary mortgage market in Malaysia. It issues bonds and sukuk to finance the purchase of housing loans from financial institutions and non-financial institutions. The provision of liquidity to financial institutions at a reasonable cost to the primary lenders of housing loans encourages further expansion of financing for houses at an affordable cost.
The Cagamas model is well regarded by the World Bank as the most successful secondary mortgage liquidity facility. Cagamas is the second largest issuer of debt instruments after the Government of Malaysia and the largest issuer of AAA corporate bonds and sukuk in the market. Since incorporation in 1986, Cagamas Group has cumulatively raised funds circa RM409.7 billion worth of corporate bonds and Sukuk.
Cagamas’ bonds and sukuk continue to be assigned the highest ratings of AAA/Stable/P1 by RAM Rating Services Berhad and AAA/MARC-1 and AAAIS/MARC-1IS by Malaysian Rating Corporation Berhad, denoting its strong credit quality. Cagamas is also well regarded internationally and has been assigned local and foreign currency long-term issuer ratings of A3 by Moody’s Investors Service Inc. that are in line with Malaysian sovereign ratings.
Cagamas Berhad
Registration No. 198601008739 (157931-A)
Level 32, The Gardens North Tower
Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur
Tel: +603 - 2262 1800 I Fax: +603 - 2282 9125
www.cagamas.com.my
Media Enquiries
Leanne Susau Tel: +603 - 2262 1719 [email protected]
Lucia Wee Tel: +603 - 2262 1868 [email protected]
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Questions around this news
What does “quasi-sovereign” mean in finance?
A quasi-sovereign issuer is an entity that is not a national government but has a close connection to one, often through ownership, sponsorship or a public mandate. The term describes an issuer’s relationship to government; it does not by itself guarantee that the government will repay the issuer’s debts.
What are sukuk, and how do they differ from conventional bonds?
Sukuk are financial certificates structured to comply with Islamic finance principles. Rather than representing an interest-bearing loan, they commonly give holders an interest in assets, projects or related cash flows. Structures vary, and their payment arrangements depend on the underlying transaction and the terms of the issue.
What does Cagamas do in Malaysia’s housing finance system?
According to the release, Cagamas was established to support wider home ownership and the growth of Malaysia’s secondary mortgage market. It raises funds by issuing bonds and sukuk, then uses those funds to buy housing loans from financial and non-financial institutions. The resulting liquidity can help lenders continue providing housing finance.
How much sustainability-focused financing has Cagamas issued since 2020?
The release states that Cagamas has issued a cumulative RM2.6 billion in ASEAN sustainability bonds and ASEAN SRI sukuk since 2020. It describes these issuances as part of the company’s work to advance sustainability objectives and its activity in the Malaysian and international sukuk markets.
