CIMB, Cagamas Pioneer Malaysia's First MYOR-I Benchmark Transactions Worth RM650 mln

KUALA LUMPUR, July 16 (Bernama) --  CIMB Islamic Bank Bhd and Cagamas Bhd have partnered to execute three landmark transactions totalling RM650 million comprising Malaysia's first Malaysia Islamic Overnight Rate (MYOR-i)-referenced Islamic Medium Term Notes (Sukuk), Islamic Profit Rate Swap (IPRS) and Islamic Asset Purchase Transaction.

In a statement today, it said the three transactions were undertaken under the Cagamas Purchase with Recourse Programme, comprising a RM300 million 1-year MYOR-i Sukuk, a RM100 million 5-year IPRS with caps and floors, and a RM250 million PWR Programme.

Collectively, these landmark transactions establish key market infrastructure to support the development of a robust MYOR-i ecosystem, while further reinforcing Malaysia's position as a global leader in Islamic finance, the bank added.

CIMB chief executive officer of group wholesale banking Chu Kok Wei said Malaysia’s maiden MYOR-i benchmark issuances by Cagamas set a vital precedent for the market, establishing a framework for future innovation in Sukuk structuring while aligning with Bank Negara Malaysia’s aspiration for the industry to transition towards MYOR-i as market benchmark rate.

“These achievements reflect our continued efforts to support market development and delivering innovative solutions that meet the evolving needs of our clients, aligned with our Forward30 strategy,” he said.

Meanwhile, Cagamas president and chief executive officer Kameel Abdul Halim said Cagamas as the country’s second largest issuer of debt instruments after the government of Malaysia, is committed to promoting liquidity and enhancing financing availability within Malaysia’s housing and financial sector.

“The successful execution of these transactions demonstrates the industry’s collective commitment to strengthening the Islamic financial market ecosystem and expanding the suite of Shariah-compliant funding and risk management solutions available to market participants,” he said. 

-- BERNAMA