Cagamas to issue Malaysia's largest sukuk this year

Reuters

KUALA LUMPUR, Oct 28 (Reuters) - State-backed mortgagelender Cagamas Bhd will on Monday raise 3.8 billionringgit ($1.20 billion) in Malaysia's largest Islamic bond orsukuk this year.

The company will offer medium-term bonds with tenures ofbetween one to 20 years. The issuance was oversubscribed by 3.2times during bookbuilding, driving its size to 3.8 billionringgit from a planned 2.5 billion ringgit.

"The transaction also marks the largest single issuance inthe company's 26-year history and brings the total issuance to273 billion ringgit, including 41 billion of sukuk," chiefexecutive officer Chung Chee Leong said in a statement.

It will issue a second sukuk of 400 million ringgit onTuesday, with tenures of one and three years.

Cagamas, which provides liquidity to primary lenders ofhousing loans in order to promote home ownership, is Malaysia'ssecond largest issuer of debt instruments after the government.

($1 = 3.1568 Malaysian ringgit) (Reporting by Al-Zaquan Amer Hamzah; Editing by Stephen Coates)

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