Cagamas priced issuance of commercial papers

Datuk Chung Chee Leong

KUCHING: Despite the continued downside risks on the global outlook, the National Mortgage Corporation of Malaysia, ­Cagamas Berhad has successfully priced its Conventional Commercial Papers (CCPs) and Islamic Commercial Papers (ICPs) issuances competitively at 21 bps to 24 bps.

Cagamas president cum chief executive office Datuk Chung Chee Leong said the price for both issuances were above from the Malaysian Government Investment Issues and marked its total issuance this year to RM7.32 billion.

“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 percent 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 recently.

The second largest debt instrument issuer also has allocated a total of RM545 million to fund the purchase of housing loans and house financing from financial institutions for three months.

“The amount comprises the issuance for a three-month CCPs amounting to RM300 million and RM245 million for a three-month ICPs.

“The papers, which will be redeemed at their full nominal value upon 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,” he added.