Cagamas issues RM305m papers to purchase home loans

KUALA LUMPUR (Feb 22): Cagamas Bhd has issued RM305 million in three-month Islamic commercial papers (ICP) to fund the purchase of Islamic home financing from the financial system.

Its chief executive officer Datuk Chung Chee Leong said the ICP represents the national mortgage corporation’s second issuance in 2018.

“Despite subdued market activities leading up to the Chinese New Year festivities, the ICP was successfully priced at parity with the current three-month Kuala Lumpur Interbank Offer Rate,” said Chung in a statement yesterday.

This brings the year-to-date issuance of Cagamas to RM725 million, with more expected issuances within the first quarter of this year, he added.

The papers, to be redeemed at their full nominal value upon maturity, are unsecured obligations of the company.

This article first appeared in The Edge Financial Daily, on Feb 22, 2018.

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