Cagamas set to double annual issuance with $151m sukuk

KUALA LUMPUR: State-backed mortgage lender Cagamas Bhd has doubled its annual issuance of bonds for 2013 with a year-end sukuk worth 500 million Malaysian ringgit ($151.92 million).

The three-month sukuk will bring its total issuance for the year to 9.9 billion ringgit, Cagamas said in a statement.

Response for the sukuk fell below the company's average subscription rate due to competition from fixed deposits with the same investment tenure and the year-end book-closing period, said Cagamas.

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.