10 Oct 2019
Cagamas Berhad & Japan Housing Finance Agency ink MOC to Explore Opportunities for Housing Finance
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YOKOHAMA, Japan (10 October 2019) - Malaysia’s Cagamas Berhad (Cagamas) and Japan Housing Finance Agency sealed a Memorandum of Cooperation (MOC) today with the aim of strengthening cooperative relationship for development of housing finance in their respective countries.
The MOC was inked by Cagamas President/ Chief Executive Officer, Datuk Chung Chee Leong and his Japanese counterpart, Mr. Toshio Kato, President, Incorporated Administrative Agency Japan Housing Finance Agency (JHF).
Datuk Chung said, “We look forward to work with JHF in our effort to deepen regional collaborations particularly on developing green housing financial products which can benefit Malaysians thereby promoting sustainable development and address climate change. This collaboration will also serve to reinforce greater global cooperation of our institutions in line with our mandate to develop the secondary mortgage finance market.”
Mr. Toshio Kato said, “Cagamas is a globally renowned financial institution and Datuk Chung Chee Leong demonstrated strong leadership as the first Chairman of the International Secondary Mortgage Market Association, the first global association to foster discussion between secondary mortgage markets institutions. With knowledge and experience sharing between JHF and Cagamas, we hope to provide better housing finance services to both Japanese and Malaysian people and contribute to the wellness and prosperity of the communities within the two countries.”
The MOC enables the wealth of domestic experience in housing finance, mortgage and financial instruments to be mutually exchanged between Malaysia and Japan. This is expected to enhance the stability of housing and mortgage markets particularly in the areas of green housing, mortgage backed securities (MBS) as well as other funding instruments to leverage private capital to the housing market. A central feature includes identifying and attracting private and public capital investment.
Cagamas is the second largest issuer of debt instruments after the Government of Malaysia and the largest issuer of AAA corporate bonds and sukuk in the market. Since incorporation in 1986, Cagamas has cumulatively issued circa RM323.5 billion (US$77 billion) worth of corporate bonds and sukuk.
JHF is the sole Japanese government owned housing loan arm and has been the pioneer in purchasing of green mortgages and issuing of (i) JHF Green Bonds purposed to finance the purchasing of JHF defined green mortgages, and (ii) JHF MBS backed by green and other mortgages. As of end of FY2018, JHF MBS outstanding amounts reached JPY 13.6 trillion (US$124 billion). JHF issued the first JPY 10 billion (US$91 million) 20-year Green Bond in January 2019. JHF MBS receives AAA (sf)/AAA ratings and JHF Green Bond receives A+/AA+ ratings from S&P Global Ratings/ Rating and Investment Information, Inc. (R&I) at the time of issuance.
The MOC was inked by Cagamas President/ Chief Executive Officer, Datuk Chung Chee Leong and his Japanese counterpart, Mr. Toshio Kato, President, Incorporated Administrative Agency Japan Housing Finance Agency (JHF).
Datuk Chung said, “We look forward to work with JHF in our effort to deepen regional collaborations particularly on developing green housing financial products which can benefit Malaysians thereby promoting sustainable development and address climate change. This collaboration will also serve to reinforce greater global cooperation of our institutions in line with our mandate to develop the secondary mortgage finance market.”
Mr. Toshio Kato said, “Cagamas is a globally renowned financial institution and Datuk Chung Chee Leong demonstrated strong leadership as the first Chairman of the International Secondary Mortgage Market Association, the first global association to foster discussion between secondary mortgage markets institutions. With knowledge and experience sharing between JHF and Cagamas, we hope to provide better housing finance services to both Japanese and Malaysian people and contribute to the wellness and prosperity of the communities within the two countries.”
The MOC enables the wealth of domestic experience in housing finance, mortgage and financial instruments to be mutually exchanged between Malaysia and Japan. This is expected to enhance the stability of housing and mortgage markets particularly in the areas of green housing, mortgage backed securities (MBS) as well as other funding instruments to leverage private capital to the housing market. A central feature includes identifying and attracting private and public capital investment.
Cagamas is the second largest issuer of debt instruments after the Government of Malaysia and the largest issuer of AAA corporate bonds and sukuk in the market. Since incorporation in 1986, Cagamas has cumulatively issued circa RM323.5 billion (US$77 billion) worth of corporate bonds and sukuk.
JHF is the sole Japanese government owned housing loan arm and has been the pioneer in purchasing of green mortgages and issuing of (i) JHF Green Bonds purposed to finance the purchasing of JHF defined green mortgages, and (ii) JHF MBS backed by green and other mortgages. As of end of FY2018, JHF MBS outstanding amounts reached JPY 13.6 trillion (US$124 billion). JHF issued the first JPY 10 billion (US$91 million) 20-year Green Bond in January 2019. JHF MBS receives AAA (sf)/AAA ratings and JHF Green Bond receives A+/AA+ ratings from S&P Global Ratings/ Rating and Investment Information, Inc. (R&I) at the time of issuance.
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