Highlights

• Cagamas strengthens its commitment to sustainable finance.
• Launches a RM50 million Social Repurchase Agreement to support SMEs.
• Issues RM100 million ASEAN Sustainability Bond and RM290 million ASEAN Social SRI Sukuk for affordable housing.

Cagamas Berhad, Malaysia's National Mortgage Corporation, is advancing sustainable finance with a recent RM50 million Social Repurchase Agreement (Social Repo).

This deal with a local financial institution will fund loans for Small and Medium Enterprises (SMEs). It aligns with Cagamas' Sustainability Bond/Sukuk Framework, providing a new funding option that supports sustainability goals.

Cagamas has issued a RM100 million 2-year ASEAN Sustainability Bond and RM290 million in 3-month and 6-month Islamic Commercial Papers (ICPs) with ASEAN Social SRI Sukuk status. This is the company’s first short-term Islamic debt with a social label. The funds will be used to finance affordable housing, displaying Cagamas’ commitment to social responsibility.

Cagamas President/CEO, Kameel Abdul Halim said: "These transactions underscore our on-going efforts to foster a sustainable and inclusive financial ecosystem. The Social Repo for SMEs which is a first of its kind for Cagamas, and the ASEAN Social SRI Sukuk for affordable housing are critical steps in our journey to drive meaningful social change through innovative financial solutions.

“Cagamas remains committed to advancing and leveraging financial instruments to promote sustainable and affordable home financing. These transactions mark significant milestones in our broader strategy to integrate sustainability into our core business offerings."

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Source: Cagamas