Cagamas Bhd, the national mortgage corporation, has announced the issuance of RM500 million three-month Islamic Commercial Papers (ICPs).
In a statement Tuesday, Cagamas said the proceeds from the issuance will be used to fund the purchase of Islamic mortgages from the financial system.
Its president/chief executive officer, Chung Chee Leong, said a strong demand from diverse investor base comprising of financial institutions, insurance companies and fund managers has resulted in orders of over RM1 billion, representing an oversubscription rate in excess of two times.
“The ICPs were competitively-priced despite increased volatility in the bond market,” he said.
He said the issue will increase Cagamas’ total issuance for the year to RM1.6 million.
Since incorporation in 1986, Cagamas has cumulatively issued RM267.3 billion of conventional and sukuk.
The ICPs, which will be redeemed at their full nominal value on maturity, are unsecured obligations of the company, ranking pari passu among themselves and with all other existing unsecured obligations of the company.
They will be listed and tradable under the Scripless Securities Trading System.