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Malaysia’s Cagamas sells 3-yr sukuk at 3.48 pct yield
The Cagamas issuance was jointly managed by the Malaysian units of Saudi bank Al Rajhi and The Royal Bank of Scotland and RHB Investment Bank Berhad.
August 18, 2010 2:44 by Reuters
Malaysia’s national mortgage firm Cagamas said on Wednesday it has sold 1 billion ringgit ($317.1 million) in three-year tradeable sukuk at a yield of 3.48 percent.
The paper, which is part of a 5 billion ringgit fund raising programme, had a subscription rate of 2.7 times, Cagamas said in a statement.
Offshore investors took up 43 percent of the issue, and Middle East investors accounted for a third, it said.
The sukuk is based on a novel structure designed to enable Middle Eastern investors to trade the paper in secondary markets and is aimed at helping to narrow the differences in sharia interpretation between the Gulf and Southeast Asia.
Secondary sukuk trading is a contentious point within the $1 trillion Islamic finance industry, with religious scholars divided on whether debt can be sold to a party other than the creditor.
The Cagamas issuance was jointly managed by the Malaysian units of Saudi bank Al Rajhi and The Royal Bank of Scotland and RHB Investment Bank Berhad . Al Rajhi and Amanie Business Solutions were the sharia advisers.
(Reporting by Liau Y-Sing; Editing by Niluksi Koswanage)