Cagamas issues RM300m conventional commercial papers

PETALING JAYA: Cagamas Bhd has issued its RM300 million three-month conventional commercial papers (CCP), the proceeds of which will be used to fund the purchase of housing loans from the financial system.

President and CEO Datuk Chung Chee Leong said the issuance concluded raises the company’s outstanding conventional corporate papers to RM1.05 billion, representing 16% of the overall short-term local currency market domestically.

“The CCP was priced via a public offering representing the company’s first book building exercise for the year, which received overwhelming response evidenced by a commendable bid-to-cover ratio of over three times,” he said in a statement.

Chung said the CCP was competitively priced at the lower end of the initial price guidance, which was seven basis points lower than the three-month Interbank Offered Rate.

“Orders were received from a diversified pool of investors including financial institutions and companies,” he added.

The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking pari passu among themselves and with all other existing unsecured obligations of the company.

Source: The Sun Daily

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