KUALA LUMPUR, June 20 Credit agency RAM Ratings said
state-backed mortgage lender Cagamas Bhd will issue 20 billion
ringgit ($6.22 billion) in commercial paper and sukuk to refinance existing
The issue will refinance existing debt of 20 billion ringgit expiring June
25, RAM said in a ratings filing with the central bank late on Thursday,
assigning Cagamas's new programme its highest P1 rating.
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. The company doubled its annual issuance to 9.9
billion ringgit last year.
Cagamas is also looking to branch out regionally, building on its experience
with secondary mortgage markets, though details on this "remain scant", RAM
($1 = 3.2170 Malaysian Ringgit)
(Reporting By Al-Zaquan Amer Hamzah; Editing by Eric Meijer)