Cagamas Berhad, the National Mortgage Corporation, announced the issuance of MYR 500 million three-month Islamic Commercial Papers (ICPs).
The proceeds from the issuance will be used to fund the purchase of Islamic financing from the financial system, said a media statement.
"Strong demand from diverse investor base comprising of financial institutions, insurance companies and fund managers resulted in orders of over MYR 1 billion representing an oversubscription rate in excess of two times," said Chung Chee Leong, President/Chief Executive Officer of Cagamas.
He added that despite increased volatility in the bond market, the ICPs were competitively priced by investors which further evident the market's confidence in Cagamas' credit profile. The issue will increased Cagamas total issuance for the year to MYR 1.6 billion.
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.