KUALA LUMPUR: Cagamas Bhd today announced its 14th issuance for the year – a three-year, RM1 billion Cagamas Islamic Medium Term Notes (IMTN).
In a statement, Cagamas said the IMTN represents the company and the country’s first ever dual tranche sukuk reopening.
It said proceeds from the issuance will be used to fund the purchase of Islamic house financing from the financial system.
“Despite being only a half-day offering, the order book received overwhelming response which allowed the company to successfully tighten the yield to 3.98 per cent and upsize the issuance from an initial size of RM800 million to RM1 billion; this demonstrated the strength and resilience of the domestic market.
“The final yield was priced competitively at a spread of 50 bps (basis points) over the three-year Government Investment Issue,” said Cagamas chief executive officer Datuk Chung Chee Leong.
Chung said the successful conclusion of this dual tranche reopening signifies the company’s continued innovation within the local fixed income market and on-going strategic initiatives to promote secondary liquidity.
He said as at September 8, 2017, Cagamas’ secondary trading volume stood at over RM5 billion.
He said subscription from foreign-based investors which represented six per cent of the total issue size indicates continued confidence in the company’s name amidst a volatile market backdrop.
Cagamas said the new issuance will bring the company’s aggregate issuance for the year to RM8.5 billion.