After scoring a blowout success last October with its M$1.6 billion ($426.5 million) maiden MBS deal (see ASR 10/18/04), hopes were high for the first Islamic MBS by Cagamas, Malaysia's secondary mortgage agency. And the M$2.05 billion deal, arranged and lead managed jointly by Commerce International Merchant Bankers and HSBC Securities, lived up to its billing with over 6.5 times oversubscription and attracting interest from over 80 accounts, sources reported.

With such strong demand, the deal was able to price through the nominal coupons attached to Cagamas' conventional MBS paper, further demonstrating how Islamic issuance continues to lead the way in Malaysian securitization.

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