The Edge 10 Nov 2014
Cagamas's mandate as the national mortgage corporation and the leading issuer of AAA
debt securities in Malaysia is to facilitate home ownership but, is
also exploring ways to develop a deeper and more liquid domestic bond
Definition: An amortising bond is structured in a way that gradually reduces the
value of the bond over a fixed period of time, meaning the borrower pays
off the full amount before the final maturity date.
Amortising bonds are commonplace, but the format is rare for sukuk. Last
year, Dubai's Emirates airline launched the first such sukuk in the
international market, a 10-year $1 billion deal with an average weighted
life of five years.
This would not affect the programme's AAA credit rating from RAM Rating Services, the company added.