Cagamas Executes Malaysia’s First MYOR-i-Referenced Sukuk

Cagamas Berhad, Malaysia’s national mortgage corporation, announced on 16 July 2026 that it had concluded the country’s first Sukuk and Islamic Profit Rate Swap (IPRS) transactions referenced against the Malaysia Islamic Overnight Rate (MYOR-i), according to Cagamas’s press release.

Cagamas Berhad’s first MYOR-i sukuk is a RM300 million one-year Islamic Medium Term Note priced against the Malaysia Islamic Overnight Rate, announced by Cagamas on 16 July 2026. It was paired with a RM100 million five-year MYOR-i Islamic Profit Rate Swap for hedging, per Cagamas’s press release.

A Sukuk and Swap Priced Off the New Benchmark

Per Cagamas’s release, the RM300 million sukuk was jointly led by AmInvestment Bank Berhad and CIMB Investment Bank Berhad as lead managers, while the RM100 million swap was transacted with CIMB Islamic Bank Berhad and functions as a hedging instrument against movements in the new rate. Cagamas described MYOR-i itself as the world’s first transaction-based Islamic benchmark rate, developed in accordance with the Principles for Financial Benchmarks, according to the release.

The transaction places Cagamas among the institutions shaping how sukuk investment platforms price Islamic fixed income in Malaysia as the market shifts its reference rate. CIMB supplied the benchmark swap curves, transaction documentation, and risk management tools behind the MYOR-i-linked instruments, Fintech News Malaysia reported on 16 July 2026.

Two Tellings of the Same Package

Cagamas’s own release frames the news around the RM300 million sukuk and RM100 million swap, but Fintech News Malaysia, reporting the same day, put the total package at RM650 million across three structures: the sukuk, the swap with caps and floors, and a RM250 million Cagamas Purchase with Recourse (PWR) Programme transaction. Business Today’s 16 July 2026 report cited the same RM650 million total and said the deals marked three Malaysian firsts: MYOR-i-referenced Islamic Medium Term Notes, a MYOR-i-based Islamic Profit Rate Swap, and a MYOR-i-referenced Islamic Asset Purchase Transaction under the PWR Programme. Fintech News Malaysia described CIMB Islamic as lead manager and execution partner across the wider package, a framing that doesn’t contradict but sits alongside Cagamas’s own release, which names AmInvestment Bank and CIMB Investment Bank as joint lead managers on the sukuk tranche specifically.

What the Deal Makers Said

Chu Kok Wei, Chief Executive Officer of Group Wholesale Banking at CIMB, said the issuances set a marker for future Islamic capital-market deals. “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,” Chu said, according to Fintech News Malaysia.

Kameel Abdul Halim, President and Chief Executive Officer of Cagamas, tied the deal to broader industry alignment behind the new rate. “The successful execution of these transactions demonstrates the industry’s collective commitment to strengthening the Islamic financial market,” Kameel said, per Fintech News Malaysia, which also reported that Bank Negara Malaysia has encouraged industry adoption of MYOR-i as a market benchmark rate.

The KLIBOR Countdown

The transactions arrive partway through Malaysia’s multi-year shift off the Kuala Lumpur Interbank Offered Rate (KLIBOR). Bank Negara Malaysia announced the transition timeline on 16 October 2025: market participants are expected to be operationally ready to offer MYOR- and MYOR-i-referenced products by 1 October 2026; KLIBOR ceases for new trades and MYOR-i becomes mandatory for new Islamic financial products from 1 July 2027; legacy KLIBOR contracts are to be converted to MYOR or MYOR-i by 30 June 2028, with remaining contracts requiring fallback provisions; and KLIBOR ceases to exist entirely on 1 January 2029, per the central bank.

MYOR and its Islamic counterpart weren’t built from a survey of quoted rates but from actual trades: both are transaction-based rates derived from the volume-weighted average rate of unsecured overnight ringgit interbank transactions, introduced in 2021 and 2022, respectively, and administered by Bank Negara Malaysia, according to Invest Malaysia. The transition aligns with Malaysia’s Financial Sector Blueprint 2022-2026 and wider global benchmark reform, per Invest Malaysia, a shift that also touches the region’s broader push covered in THT’s report on the Islamic fintech market led by Saudi Arabia, Malaysia and the UAE. Cagamas’s sukuk and swap now stand as the first live pricing of Islamic capital-market instruments off MYOR-i, with 1 July 2027 set by Bank Negara Malaysia as the date the rate becomes mandatory on new Islamic financial products.

Frequently Asked Questions

What is MYOR-i?
MYOR-i is the Malaysia Islamic Overnight Rate, described by Bank Negara Malaysia as the world’s first transaction-based Islamic benchmark rate. It was introduced in 2022 and is derived from the volume-weighted average rate of unsecured overnight ringgit interbank transactions, according to Invest Malaysia.

How large is Cagamas’s first MYOR-i sukuk?
The sukuk itself is a RM300 million one-year Islamic Medium Term Note, according to Cagamas’s press release. Fintech News Malaysia reported the wider package, including a RM100 million swap and a RM250 million PWR Programme transaction, totaled RM650 million.

Who arranged Cagamas’s MYOR-i sukuk?
Per Cagamas’s release, AmInvestment Bank Berhad and CIMB Investment Bank Berhad jointly led the RM300 million sukuk, while CIMB Islamic Bank Berhad transacted the RM100 million swap. Fintech News Malaysia described CIMB Islamic as lead manager and execution partner on the overall package.

When will KLIBOR be phased out in Malaysia?
Bank Negara Malaysia set 1 July 2027 as the date KLIBOR ceases for new trades and MYOR-i becomes mandatory for new Islamic financial products, with full cessation of KLIBOR on 1 January 2029, the central bank announced on 16 October 2025.

What does the Islamic Profit Rate Swap do in this deal?
The RM100 million five-year Islamic Profit Rate Swap carries caps and floors and serves as a hedging instrument referenced against MYOR-i, according to Cagamas and Fintech News Malaysia.