Cagmas, Malaysia's secondary mortgage agency, is putting the final touches to its eagerly awaited first Islamic RMBS (see ASR, 3/21/05), which is jointly arranged by Commerce International Merchant Bankers and HSBC Securities. The transaction has been increased from M$1.5 billion ($395 million) to M$2.5 billion, according to a source close to the situation, making it the largest ever Islamic ABS deal.
The issuer and leads are planning to begin roadshows in mid July, when they will meet investors in Kuala Lumpur, Singapore and Hong Kong. The source added the deal will feature three-, five-, seven-, 10-, 12- and 15- year tranches, with the latter being the longest dated tranche offered to date on an Islamic deal.
Additionally, more details have emerged regarding Cagamas's plans to securitize SME loans (see ASR, 6/20/05). Initially it had been reported that the agency had selected two separate consortia - Citigroup Global Markets and Aseambankers, as well as Deutsche Bank Securities and Overseas Chinese Banking Corp - to arrange the deal, collateralized by loans originated by Maybank (Aseambanker's parent) and OCBC.
Now it seems that a third consortium, CIMB and Bumiputra Commerce Bank, will also put together a deal out of Bumiputra's M$10 billion SME loan portfolio. Apparently, none of the three groups has received a formal mandate as yet, and are actively lobbying Cagamas to be the first. The program is part of a government effort to boost lending to Malaysian enterprises.
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