KUALA LUMPUR, 13 JULY: Cagamas Bhd, Malaysia’s National Mortgage Corporation, has announced the issue of three-month Islamic Commercial Papers worth RM300 million (ICPs). The ICPs will be issued under the Islamic Commodity Murabahah framework, with the revenues going toward purchasing Shariah-compliant assets.
“We are delighted with the outcome of the company’s most recent issuance, which witnessed ongoing demand in our short-term papers ahead of the Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting,” Cagamas president and chief executive officer Datuk Chung Chee Leong said in a statement today.
He highlighted that the global growth outlook remained uncertain due to concerns that the economic recovery is faltering in the wake of the development of new Covid-19 versions, heightening fears of movement restrictions.
“Investors remain cautious domestically due to a lack of meaningful catalysts in the market, given the concerns surrounding the Covid-19 pandemic and vaccination progress,” Chung added.
“The ICPs were priced at the three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus five basis points (bps) — or equivalent to 1.99 percent based on the KLIBOR fixing on the pricing date — and the spread was 23bps over the corresponding Malaysian Islamic Treasury Bills,” he continued.
With this fresh issuance, the company’s total issuance for the year now stands at RM8.45 billion.
The papers are unsecured obligations of the corporation that rank pari passu with the company’s other existing unsecured obligations and will be redeemed at their full nominal value upon maturity.
They’ll be listed on the Scruples Securities Trading System and traded there./n
