KUALA LUMPUR (May 24): Cagamas Bhd said today it recently concluded the issuance of RM1.5 billion worth of two-year conventional medium term notes (CMTNs) comprising two tranches of RM700 million and RM800 million respectively to raise money to fund the purchase of housing loans from the financial system.
In a statement today, Cagamas president and chief executive officer (CEO) Datuk Chung Chee Leong said pricing for the CMTNs was concluded in a relatively muted market after the Eid holidays and that the securities received encouraging support from investors.
Malaysian markets were closed for the Eid or Hari Raya Aidilfitri holidays on May 13 and 14, 2021 before trading resumed last Monday.
Today, Chung said: “The RM700 million issuance was concluded via private placement, while the second tranche of RM800 million was conducted via a book-building exercise, which was upsized to RM800 million from an initial size of RM500 million."
"The book-building exercise attracted a book size of RM925 million from a diverse group of domestic and offshore investors, which allowed the company to close the final yield at 2.5% from the initial price guidance of 2.55%, registering a 44 basis-point (bps) spread against the Malaysian Government Securities,” Chung said.
According to Cagamas’ statement, the new bond issuance brought the company’s aggregate issuance for the year to RM5.9 billion so far.
The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, Cagamas said.
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