Malaysia’s national mortgage corp issues 1 bln ringgit in sukuk for home financing

Cagamas Berhad, the National Mortgage Corporation of Malaysia, has issued 600 million ringgit ($144.78 million) in Islamic commercial papers and 400 million ringgit ($96.52 million) in Islamic medium term notes.

The corporation also sold 200 million ringgit in conventional commercial papers, it said in a statement on Monday (Dec 23).

Cagamas said the issuances will be used to fund the purchases of mortgage loans and Islamic home financing from the domestic financial system.

The three papers take the company's aggregate issuances for the year to 10.2 billion ringgit and this marks Cagamas' third consecutive year surpassing 10 billion ringgit worth of issuances, said the statement.

The six-month Islamic and conventional commercial papers were priced at 3.25% and the one-year Islamic medium term note at 3.29%.

The papers will be redeemed at their full nominal value upon maturity, said Cagamas.

Cagamas promotes home ownership in Malaysia through the provision of cheaper funding. It issues corporate bonds and sukuk to finance the purchase of housing loans form financial and non-financial institutions, providing liquidity to primary lenders of housing loans.

The corporation has cumulatively issued around 327.9 billion ringgit in corporate bonds and sukuk since its establishment in 1986, it said in the statement.

($1 = 4.1439 Malaysian ringgit)

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