Cagamas 2021 yearly issuances jump 65% y-o-y to RM19.2 billion, highest since 2002

KUALA LUMPUR (Dec 21): Cagamas Berhad's aggregate issuances for 2021 jumped 65% year-on-year to RM19.2 billion in 2021, hitting the highest annual issuance since 2002.

In a statement Tuesday (Dec 21), the National Mortgage Corporation of Malaysia announced its aggregate issuances of RM900 million 3-month Conventional Commercial Papers (CCPs).

It said proceeds from the issuances will be used to fund the purchase of housing loans from the financial system.

Cagamas president/CEO Datuk Chung Chee Leong said this marked a strong ending to an eventful year as the company recorded the highest issuance since the past two decades ago.

“It has been an eventful year, following how challenging 2020 was for the local and global markets.

“We are hopeful that 2022 will be a better year as the world charts for economic recovery amid the recent emergence of the Omicron variant, which may pose a downside risk to the strength of recovery.

“Cagamas remains vigilant during this period and continues to remain committed towards fulfilling its mandate as a financial between the capital market and the Malaysian housing sector,” he said.

The CCPs were priced at the corresponding 3-month KLIBOR benchmark rate plus 3 basis points (bps) based on KLIBOR fixing on the pricing date, representing a spread of 24 bps above the corresponding Malaysia Treasury Bills.

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.

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