Malaysia’s national mortgage corporation Cagamas on August 5 announced its first double issuances of an Asean sustainability SRI sukuk and Asean sustainability bond totalling 300 million ringgit ( US$71.10 million ), issued under its existing 60 billion ringgit Islamic/conventional medium-term notes programme.

The issuances, comprising a three-year 100-million ringgit SRI sukuk and 200 million ringgit sustainability bond, were arranged to fund the purchase of eligible Islamic financing and housing loans for affordable housing.

“After the success of our inaugural sustainability issuances last year, Cagamas continues its efforts to facilitate the mobilization of its issuance proceeds towards the development of sustainability financing,” says Cagamas president and CEO Datuk Chung Chee Leong. “We are glad to see the increasing awareness and support given by investors on sustainability financing and issuances of such natur,e which would allow investors to deploy capital towards essential social needs.”

The issuances, conducted via private placement exercise, were priced at 38bp to 43bp above the corresponding three-year Malaysian Government Investment Issue ( MGII )/Malaysian Government Securities ( MGS ). The SRI sukuk and sustainability bond for affordable housing were assigned the highest social benefit rating of tier-1 by RAM Sustainability under Cagamas’ sustainability bond/sukuk framework.

The transactions marked Cagamas’ 18th offering for the year and brings the year-to-date issuance amount to 8.95 billion ringgit.

The company successfully issued in October 2020 Malaysia’s inaugural Asean sustainability SRI sukuk for affordable housing amounting to 100 million ringgit. The issuance generated a strong response from investors that included a statutory body, sovereign wealth funds, pension funds, financial institutions, asset managers and insurance companies.