Cagamas Berhad (Cagamas), the National Mortgage Corporation of Malaysia, was established in 1986 to promote the broader spread of house ownership and growth of the secondary mortgage market in Malaysia. It issues debt securities to finance the purchase of housing loans and receivables from financial institutions, selected corporations and the public sector. The provision of liquidity at a reasonable cost to the primary lenders of housing loans encourages further financing of houses at an affordable cost.
The Cagamas model is well regarded by the World Bank as the most successful secondary mortgage liquidity facility. Cagamas is the largest issuer of private debt securities in the Malaysian capital market. Since incorporation in 1986, Cagamas has cumulatively issued RM279 billion (as at 31 December 2015) of bonds and sukuk, which includes issuances by its wholly owned subsidiaries, Cagamas Global P.L.C. and Cagamas Global Sukuk Berhad which are also guaranteed by Cagamas.
Cagamas’ debt securities continue to be assigned the highest ratings of AAA and P1 by RAM Rating Services Berhad and AAA/AAAID and MARC-1/MARC-1ID by Malaysian Rating Corporation Berhad, denoting its strong credit quality. Cagamas is also well regarded internationally and has been assigned local and foreign currency long-term issuer ratings of A3 by Moody’s Investors Service Inc. that are in line with Malaysian sovereign ratings.
Cagamas Global P.L.C. was incorporated on 4 April 2014 as a conventional fund raising vehicle incorporated in Labuan to undertake the issuance of bonds and notes in foreign currency. Whereas, Cagamas Global Sukuk Berhad was incorporated on 5 May 2014 as an Islamic fund raising vehicle to undertake the issuance of sukuk in foreign currency.
Once again the London Sukuk Summit delivered on its promise to be a key event
The quality of the discussions led by the panellists and also in the margins of the conference was excellent and highly relevant
Sukuk remains an untapped opportunity for European corporates
ICG’s London Sukuk Summit has over the years played an important part in raising the profile of Sukuk and educating the issuers and investors in this important financing instrument.
I was delighted to be asked to give a key note speech at the Sukuk Summit
The opportunity to engage with global experts & industry practitioners was very welcome and I greatly appreciated the hard work of all those involved.