Cagamas, the National Mortgage Corporation of Malaysia, has concluded the issuance of 715 million ringgit (US$159.5 million) worth of sukuk, comprising one-year variable rate notes (VRNs), three-year Islamic medium-term notes (IMTNs) and five-year IMTNs.
The proceeds will be used to fund house financing from the domestic financial system.
“The three-year and five-year IMTNs were successfully concluded via book-building exercises which allowed the company to achieve a final book-to-cover ratio of 2x and 5x respectively, with participation from a diversified pool of investors including corporates, insurers, financial institutions and a sovereign fund," Cagamas president and chief executive officer Chung Chee Leong says.
The issuances bring the total funds raised for the year to 2.74 billion ringgit, he adds.
The papers will be redeemed at their full nominal value upon maturity. They are unsecured obligations of the company, ranking pari passu with all of its other existing unsecured obligations.