Cagamas, Malaysia's secondary mortgage agency, began roadshows last week for the country's first Islamic mortgage-backed securitization. Accompanied by joint lead managers Commerce International Merchant Bankers and HSBC Securities plus co-managers ABN AMRO and AmMerchant Bank, Cagamas met with investors in Kuala Lumpur, Hong Kong and Singapore for a M$2.05 billion issue ($527.6 million). Pricing and closing of books are scheduled for Wednesday.
The deal, issued out of the Cagamas MBS Berhard SPV, securitizes a static pool of mortgages extended to public sector workers. Cagamas bought the portfolio, consisting of 37,334 contracts worth M$2.84 billion, from the Government Housing Loans Division, which will act as servicer.