KUALA LUMPUR: Cagamas Bhd issued RM300mil three-month Islamic commercial papers (ICPs) and the proceeds will be used to purchase of Shariah compliant assets.

       The National Mortgage Corporation of Malaysia said on Tuesday the ICPs will be issued under the Islamic Commodity Murabahah structure.

       Cagamas president and CEO Datuk Chung Chee Leong (pic) said there was continued interest in its short term papers, ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting last week.

       He said on the global front, the outlook on growth remains uncertain, fueled by the concerns that the economic recovery was showing signs of faltering amid a surge in Covid-19 cases driven by the emergence of new variants, further heightening fears of restriction imposition.

       Domestically, investors continue to remain cautious due to a lack of strong catalyst in the market, given the uncertainties surrounding the pandemic and its vaccination progress.

       Chung said the ICPs were priced at the corresponding three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) plus five basis points (bps), or equivalent to 1.99% based on KLIBOR fixing on the pricing date.

       “The spread was 23 bps above the corresponding Malaysian Islamic Treasury Bills, he added.

       The new issuance brings the company’s aggregate issuance for the year to RM8.45bil.

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

       They will be listed and tradable under the Scripless Securities Trading System.