Malaysia's Cagamas MBS to price RM 2.05 billion in multiple tranches

By Paul A. Harris

St. Louis, July 25 - Cagamas MBS Bhd. plans to price RM 2.05 billion of Islamic Sukuk fixed-rate residential mortgage-backed securities on Thursday, according to a market source.

The company is the government of Malaysia's national mortgage lender.

HSBC and CIMB Bhd. are joint bookrunners. The joint lead managers are ABN Amro and AmMerchant Bank Bhd.

The following tranches are contemplated, according to the source:

* RM 250 million bullet due 2008, talked at Malaysian Government Securities (MGS) plus 27 to 42 basis points (3.44% area);

* RM 215 million bullet due 2009 talked at MGS plus 45 to 60 bps (3.86% area);

* RM 260 million bullet due 2012 talked at MGS plus 46 to 61 bps (4.27% area);

* RM 515 million bullet due 2015 talked at MGS plus 49 to 64 bps (4.63% area);

* RM 410 million bullet due 2017 talked at MGS plus 65 to 75 bps; and

* RM 400 million limited pass-through notes due 2020, price talk MGS plus 70 to 80 bps (5.30% area).

The entire issue is rated AAA by the Ratings Agency of Malaysia and AAA by the Malaysian Rating Corp.

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