Page 431 - 2019 6th AFIS & ASMMA

▧ PWOR
Under this scheme, Cagamas purchases the mortgage assets and hire purchase
assets from counterparties on an outright basis for the remaining tenure of
the respective assets purchased. The purchases are made without recourse
to counterparties, other than certain warranties to be provided by the seller
pertaining to the quality of the assets. As of 31 December 2018, this scheme
reported total consolidated assets of MYR12.0 billion ($2.9 billion) and accounted
for 36.1% of the company’s total external revenue in 2018.
Malaysia
▧ Issuance of Corporate Bonds and Sukuk
Cagamas taps into the capital markets to funds its purchases through the
issuance of corporate bonds and sukuk in the form of fixed and floating rate
bonds, discounted notes and sukuk. To manage liquidity risk, Cagamas issues
corporate bonds and sukuk that is closely matched against corresponding
cashflows and maturity profiles of its portfolio of purchased loans and financing.
| COMPANY | All corporate bonds and sukuk issued by Cagamas are unsecured, and rank
Cagamas Berhad pari passu among themselves. As of 31 December 2018, the company had
cumulatively issued MYR317.6 billion of bonds and sukuk since its incorporation.
| CEO |
Datuk Chung Chee Leong ▧ Mortgage Guarantee Programme
In line with the Malaysia government’s priority to promote affordable housing
to the nation, Cagamas SRP Berhad (CSRP) offers mortgage guarantee as
a “first loss” protection on residential mortgage portfolio of the Financial
» Vision Institutions (FIs). The guarantee reduces the credit risk of the FI’s housing loans
and financing and thus reduces the capital charge. From the house buyer’s
To promote homeownership and contribute perspective, the guarantee serves as a useful facility to enable them to obtain
towards nation development up to 110% financing from the FIs to own their first home through Skim Rumah
Pertamaku (My First Home Scheme; SRP) and Skim Perumahan Belia (Youth
Housing Scheme; SPB). Since the launch of SRP and SPB in year 2011 and 2015
» Main Business respectively, CSRP has provided guarantee for housing loans and financing
totalling RM3.7 billion enabling 17,743 individuals/households to own their first
▧ PWR house, of which 29% are from the B40 segment. Session I

Under this scheme, Cagamas purchases mortgage loans, personal loans,
hire purchase and leasing debts and Islamic financing facilities such as home
financing, hire purchase financing and personal financing from primary
lenders with recourse to the primary lenders should the loans and financing
fail to comply with agreed prudential eligibility criteria. As of 31 December
2018, this scheme reported total consolidated assets of MYR32.8 billion
($7.9 billion) and accounted for 63.9% of the company’s total external
revenue in 2018

432 2019 6th AFIS & ASMMA Annual Meeting 433