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Cagamas issues RM200m conventional commercial papers

KUALA LUMPUR (June 20): National mortgage corporation Cagamas Bhd today announced the issuance of its first three-month Conventional Commercial Papers (CCPs) for the year, amounting to RM200 million.

President/chief executive officer Datuk Chung Chee Leong said the issuance was printed from its RM20 billion Islamic and Conventional Commercial Paper Programme, the proceeds of which would be used to fund the purchase of housing loans from the domestic financial system.

"The new year saw improved investors sentiment on the back of growing optimism from the trade deal between the United States (US) and China. Strengthening of the Malaysian Ringgit and strong foreign portfolio inflows, anchored by a relatively dovish US Federal Reserve as well as the continued global low-rate environment have contributed to the improved momentum in the local bond market.

"These positive sentiments assisted to pave the way for the company to price its CCPs at a competitive yield,” he said in a statement.

He said the CCPs were priced ahead of the Monetary Policy Meeting (MPC) scheduled for Jan 22, 2020, and competitively priced at the corresponding three-month Kuala Lumpur Interbank Offered Rate (KLIBOR), minus 3 bps based on KLIBOR fixing on the pricing date.

"The pricing of the CCPs represented 31 bps above Malaysian Treasury Bills,” he added.

The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking pari passu among themselves and with all other existing unsecured obligations of the company.

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