CIMB Islamic Bank Berhad (CIMB) has partnered with Cagamas Berhad to execute three landmark transactions that mark major milestones in Malaysia’s Islamic capital markets and support Bank Negara Malaysia’s efforts to establish the Malaysia Islamic Overnight Rate (MYOR-i) as the country’s Islamic risk-free rate benchmark.
The transactions comprise Malaysia’s first MYOR-i-referenced Islamic Medium Term Notes (Sukuk), the country’s first MYOR-i-based Islamic Profit Rate Swap (IPRS), and the first MYOR-i-referenced Islamic Asset Purchase Transaction under Cagamas’ Purchase with Recourse (PWR) Programme.
The transactions include a RM300 million one-year MYOR-i Sukuk, a RM100 million five-year IPRS with caps and floors, and a RM250 million PWR Programme transaction.
Collectively, the deals establish critical market infrastructure to accelerate the adoption of MYOR-i while reinforcing Malaysia’s position as a global leader in Islamic finance.
As lead manager and execution partner, CIMB was responsible for structuring and executing the transactions, while also helping to develop the supporting Islamic market infrastructure required for MYOR-i adoption. This includes benchmark swap curves, transaction documentation and risk management capabilities tailored to MYOR-i-linked instruments.
Chief Executive Officer of Group Wholesale Banking at CIMB, Chu Kok Wei, said the collaboration with Cagamas demonstrates the bank’s commitment to advancing innovation in Malaysia’s Islamic capital markets.
“Malaysia’s maiden MYOR-i benchmark issuances by Cagamas set a vital precedent for the market, establishing a framework for future innovation in Sukuk structuring while aligning with Bank Negara Malaysia’s aspiration for the industry to transition towards MYOR-i as the market benchmark rate,” he said.
Chu added that the achievement reflects CIMB’s ongoing efforts to deliver innovative financing solutions while supporting market development under the group’s Forward30 strategy.
Cagamas President and Chief Executive Officer Kameel Abdul Halim said the partnership underscores the commitment of both institutions to strengthen Malaysia’s Islamic financial market ecosystem.
“The successful execution of these transactions demonstrates the industry’s collective commitment to strengthening the Islamic financial market ecosystem and expanding the suite of Shariah-compliant funding and risk management solutions available to market participants,” he said.
The initiatives are expected to deepen liquidity and transparency in Malaysia’s Islamic financial markets while enabling broader adoption of MYOR-i-based financial products.
CIMB said it will continue working closely with Cagamas, regulators and industry stakeholders to develop the next generation of Islamic capital market solutions and strengthen the resilience of Malaysia’s financial sector.
