After one of the most drawn-out mandate processes in Asian securitization history, Cagamas, Malaysia's state-run secondary mortgage agency, has finally selected arrangers for its planned Islamic MBS. HSBC beat off bids from Deutsche Bank Securities and Standard Chartered to secure the foreign advisory role, and will be supported by dominant local house Commerce International Merchant Bankers.

Cagamas originally invited proposals in November for the M$1.5 billion ($395 million) deal - potentially a first for the Malaysian market - and was due to make a decision late last year. However, according to bankers familiar with the mandate, the agency could not get comfortable with the proposed structure and called for the competing banks to submit new bids last month.

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