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Cagamas funds its
purchases of loans and debts primarily through the issuance of Cagamas debt
securities. The five types of debt securities issued by Cagamas to fund its
portfolio of loans and debts purchased under the facilities for housing
loans, industrial property loans, hire purchase and leasing debts, Islamic
house financing debts and Islamic hire purchase debts are as follows:
Cagamas Fixed Rate Bonds
These bonds have tenures of 1.5 to 10 years and carry a fixed coupon rate
which is determined at the point of issuance, based on the tenders submitted
by the Principal Dealers. Interest on these bonds is paid half-yearly. The
redemption of the bonds is at nominal value together with the interest due
on maturity date.
Cagamas Floating Rate Bonds
These instruments have a tenure of up to 10 years and an adjustable interest
rate pegged to the 3-month or 6-month KLIBOR. The interest rate is reset
every 3 or 6 months while interest is paid at 3 or 6 monthly intervals. They
are redeemed at face value together with the interest due upon maturity.
Cagamas Notes
These are short-term instruments with maturities between 1 to 12 months
issued at a discount from the face value. The other features of these notes
are similar to those of the Malaysian Treasury Bills. They are redeemable at
their nominal value upon maturity.
Sanadat Mudharabah Cagamas
These are Islamic bonds issued under the Islamic principle of Mudharabah
(profit-sharing) to finance the purchase of Islamic house financing debts
which were granted on the basis of Bai Bithaman Ajil and the purchase of
Islamic hire purchase debts which were granted under the principle of Ijarah
Thumma Al-Bai. Dividend based on a pre-determined profit sharing ratio is
payable semi-annually. They are redeemable at par on maturity date unless
there is principal diminution. These instruments may have a tenure of up to
10 years.
Sanadat Cagamas
These are Islamic bonds issued under the Islamic principle of Bai Bithaman
Ajil to finance the purchase of Islamic house financing debts and Islamic
hire purchase debts. Dividend on these bonds is payable semi-annually. The
bonds are redeemable at par together with the dividend due on maturity date.
These instruments may have a tenure of up to 10 years.
Where permitted by the respective trust deeds, Cagamas may at any time
purchase its debts securities and the repurchased debt securities shall be
cancelled according to the requirements of the trust deeds and FRS139.
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