Cagamas issues country's first dual tranche #sukuk reopening

Cagamas announced its 14th issuance for the year, a three-year, RM1 billion sukuk, which represents Malaysia's first ever dual tranche sukuk reopening. Proceeds from the issuance will be used to fund the purchase of Islamic house financing from the financial system. CEO Datuk Chung Chee Leong noted that the final yield was priced competitively at a spread of 50 basis points over the three-year Government Investment Issue. He said as at September 8, 2017, Cagamas' secondary trading volume stood at over RM5 billion. He added that subscription from foreign-based investors indicates continued confidence in the company. The new issuance will bring the company’s aggregate issuance for the year to RM8.5 billion.

Cagamas issuing second Singapore-dollar sukuk

National mortgage corporation Cagamas Bhd is issuing its second Singapore dollar-denominated sukuk worth S$150mil. The sukuk, to be issued through subsidiary Cagamas Global Sukuk Bhd, will be fully and unconditionally guaranteed by Cagamas. The issuance, with a maturity of one year, comes under Cagamas’ US$2.5bil multicurrency sukuk issuance programme. The proceeds of the sukuk will be used to fund the purchase of Islamic home financing from the financial system. The issuance will bring the company’s aggregate issuance for this year to RM3.2bil.

FX moves hamper Cagamas’ foreign currency sukuk issue

Volatile currency markets could hamper Malaysian mortgage lender Cagamas Bhd's plans for its first foreign currency sukuk, the state-backed firm's chief executive Chung Chee Leong said. In November, Cagamas set up a US$2.5 billion (RM9.2 billion) programme to issue multi-currency sukuk in an effort to broaden its investor base. Chung said that at this moment, dollar was just not attractive, adding that US dollar issue was still the most likely option. He hopes the issue could still come this year. Asked about expansion plans, Chung said Cagamas was not working on opening subsidiaries in other countries, but would rather aim to take on loans that Malaysian lenders made outside the country through their Malaysian offices.

Cagamas issues RM500m Islamic bond

Cagamas, the Malaysian mortgage corporation, has issued RM500 million three-month Islamic commercial papers (ICPs), its first ICP for the year. Proceeds from the murabahah ICPs will be used to fund the purchase of Islamic financing from the financial system. Investors' preference for high grade issues and short duration investment strategy results in strong demand for the company's three-month ICPs particularly from financial institutions with a bid to cover ratio of over 2.4 times and competitively priced at three-month KLIBOR. The ICPs, which will be redeemed at their full nominal value on maturity, will be listed and tradable under the Scripless Securities Trading System.

Cagamas unveils multi-tenured Sukuk and conventional debt

The Malaysian National Mortgage Corporation - Cagamas - has made an announcement about the issuance of its MYR 125 million multi-tenured debt securities comprising Sukuk Commodity Murabahah and Conventional Medium Term Notes (CMTNs) of MYR 90 million and MYR 35 million respectively. The issuance will be carried out in benchmark 3, 5, 7, 10, 12 and 15-year tenures. The respective yields are 3.35%, 3.50%, 3.75%, 3.90%, 4.00% and 4.14%. They are also equivalent to a 31 basis points to 45 basis points range above comparable Malaysia Government Securities (MGS). Proceeds will be used for the purchase of Islamic as well as conventional housing loans from the financial system.

Pakistan, Cagamas, Indonesia Plan Issuance: Islamic Bond Alert

The following borrowers are expected to sell Islamic bonds:

TURKEY: Citigroup Inc. plans to arrange more sales of Islamic bonds from Turkey after managing a $100 million issue for Kuveyt Turk Katilim Bankasi AS, said Hulusi Horozoglu, director of global Islamic banking at Citigroup.

PAKISTAN: The South Asian country plans to sell sukuk maturing in a year or less in the domestic market by the end of this month, according to an e-mailed statement from Syed Wasimuddin, a spokesman for State Bank of Pakistan, the nation’s central bank.

CAGAMAS BHD.: Malaysia’s national mortgage company plans to sell more Islamic bonds this month following a sale in August under its 5 billion ringgit ($1.6 billion) sukuk program, the Business Times reported, citing an unidentified person familiar with the proposal.

INDONESIA: plans to sell 2 trillion rupiah ($224 million) of Islamic bonds by private placement this year, said Rahmat Waluyanto, a director at the Ministry of Finance.

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