Cagamas Bhd announced the successful issuance of Islamic Medium Term Notes (IMTN) for a period of five years worth RM200 million and the proceeds will be used for the company's working capital purposes.
We are pleased with the success of this issue pricing in an environment of stricter measures implemented nationwide under the Movement Control Order 3.0 (PKP 3.0), following the increase in Covid-19 cases over the past few weeks.
"While local bond market sentiment has improved as can be seen from buying activity, the impact on growth remains uncertain after PKP 3.0," said President and Chief Executive Officer (CEO), Datuk Chung Chee Leong in a statement today.
He explained that as reported by Bernama, the RM200 million issue was finalized through a private share offer, recording a good spread of 48 basis points compared to the Malaysian Government Investment Issue.
Chee Leong added that the new issue brings the company's aggregate issue this year to RM6.1 billion.
The papers, which will be redeemed at full nominal value upon maturity, are an unsecured liability of the company, in a pari passu position and with all existing unsecured liabilities.
IMTN will be listed and traded under the Unscripted Securities Trading System.
