Cagamas, the National Mortgage Corporation of Malaysia, has issued three-month Islamic commercial papers (ICPs) amounting to 300 million ringgit (US$72.11 million), the proceeds of which will be used to purchase Islamic home financing from the financial system.

“We are pleased with the conclusion of Cagamas’ latest issuance which saw continued buying interest of our short-term papers, despite the global and local fixed-income markets coming under pressure from the growing expectations of the asset-tapering announcement by the US Federal Reserve at its November meeting,” says Cagamas president and chief executive officer Datuk Chung Chee Leong.

“The ICPs were priced at the corresponding three-month Kuala Lumpur interbank offered rate (KLibor) plus 5 basis points, or equivalent to 1.99% based on KLibor fixing on the pricing date. The spread was 23bp above the corresponding Malaysia Islamic treasury bills,” Datuk Chung adds.

The latest issuance brings the company’s aggregate issuances for the year to 12.25 billion ringgit.

The papers, which will be redeemed at their full nominal value upon maturity, are unsecured obligations of the company, ranking pari passu with all its other existing unsecured obligations. They will be listed and tradable under the Scripless Securities Trading System.