Cagamas to issue Malaysia's largest sukuk this year
KUALA LUMPUR Oct 28 (Reuters) - State-backed mortgage lender Cagamas Bhd will on Monday raise 3.8 billion ringgit ($1.20 billion) in Malaysia's largest Islamic bond or sukuk this year.
The company will offer medium-term bonds with tenures of between one to 20 years. The issuance was oversubscribed by 3.2 times during bookbuilding, driving its size to 3.8 billion ringgit from a planned 2.5 billion ringgit.
"The transaction also marks the largest single issuance in the company's 26-year history and brings the total issuance to 273 billion ringgit, including 41 billion of sukuk," chief executive officer Chung Chee Leong said in a statement.
It will issue a second sukuk of 400 million ringgit on Tuesday, with tenures of one and three years.
Cagamas, which provides liquidity to primary lenders of housing loans in order to promote home ownership, is Malaysia's second largest issuer of debt instruments after the government.
($1 = 3.1568 Malaysian ringgit) (Reporting by Al-Zaquan Amer Hamzah; Editing by Stephen Coates)