cagamas-prices-m211-billion-islamic-rmbs

Cagamas prices M$2.11 billion Islamic RMBS

The transaction is the first Islamic mortgage-backed trade to introduce a 20-year tranche. The deal attracts significant offshore interest.

Rosie Slater

May 17, 2007

Cagamas MBS Berhad priced a M$2.11 billion Islamic residential mortgage-backed security RMBS yesterday via Aseambankers, CIMB, and HSBC, achieving a record yield with an average of 3.93%. The multi-maturity, multi-tranche trade is the first Islamic RMBS transaction to introduce a 20-year tranche.

The deal built a book of M$9 billion, with a four times subscription rate at the time of pricing, and is another step towards developing and deepening the domestic Islamic capital market.

The six-day roadshow for the deal encompassed Kuala Lumpur, Singapore and Hong Kong, allowing Cagamas to meet the bulk of key Islamic investors in the region.

The issue is the largest Malaysian RMBS transaction to date, CagamasÆ second Islamic...

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