-- Cagamas Berhad (“Cagamas” or “the Company”), the National Mortgage Corporation of Malaysia, announced the launch of its latest initiative, the Green Mortgage Guarantee Programme (Green MGP), marking a significant milestone in Malaysia’s journey towards sustainable and inclusive housing finance. The product will be offered through its sister company, Cagamas SRP Berhad (“Cagamas SRP”).
The Green MGP is designed to support financial institutions in expanding their green lending portfolios while promoting environmentally conscious homeownership. This innovative product offers mortgage guarantees for residential properties that are either certified as “green” or “sustainable,” as well as for homes with green enhancements, thereby aligning housing finance with Malaysia’s climate goals under the Twelfth Malaysia Plan and the national commitment to achieve net zero emissions by 2050.
“The Green MGP is more than just a product – it’s a reflection of our commitment to a greener Malaysia. By incentivising green homes and reducing financing risks, we aim to make sustainable living more accessible and reshape the future of Malaysia’s housing and financial landscape,” said Encik Kameel Abdul Halim, President/Chief Executive Officer of Cagamas Berhad.
Building on the success of previous housing guarantee schemes such as Skim Rumah Pertamaku, Skim Perumahan Belia and the new First Home Mortgage Guarantee Programme, which have enabled over 100,000 Malaysians to own their first homes, the Green MGP introduces a new dimension of environmental responsibility. It provides financial institutions with a risk mitigation tool that supports ESG-aligned lending practices, while offering homebuyers better financing options for sustainable properties.
Encik Kameel added, “We recognise that for many institutions, ESG compliance is no longer optional. Through this programme, we hope to support our banking partners in meeting evolving sustainability standards while continuing to promote affordable home ownership.”
The Green MGP is open to financial institutions nationwide. Cagamas and Cagamas SRP invite all financial institutions to participate in this transformative journey towards a more resilient and sustainable housing ecosystem.
About Cagamas
Cagamas Berhad (“Cagamas”), the National Mortgage Corporation of Malaysia, was established in 1986 to promote the broader spread of home ownership and growth of the secondary mortgage market in Malaysia. It issues bonds and sukuk to finance the purchase of housing loans from financial institutions and non-financial institutions. The provision of liquidity to financial institutions at a reasonable cost to the primary lenders of housing loans encourages further expansion of financing for houses at an affordable cost.
The Cagamas model is well regarded by the World Bank as the most successful secondary mortgage liquidity facility. 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 Group has cumulatively raised circa RM465 billion worth of corporate bond/sukuk and others.
Cagamas’ bonds and sukuk continue to be assigned the highest ratings of AAA/Stable/P1 by RAM Rating Services Berhad and AAA/MARC-1 and AAAIS/MARC-1IS by MARC Ratings Berhad, denoting its strong credit quality. Cagamas is also well regarded internationally and has been assigned local and foreign currency long-term issuer ratings of A3 by Moody’s Investors Service Inc. that are in line with Malaysian sovereign ratings.
Cagamas Berhad
Registration No. 198601008739 (157931-A)
Level 32, The Gardens North Tower
Mid Valley City, Lingkaran Syed Putra 59200 Kuala Lumpur Tel: +603 - 2262 1800 I Fax: +603 - 2282 9125 www.cagamas.com.my
Media Enquiries
Lucia Wee
Tel: +603 - 2262 1868
Email: [email protected]
Release ID: 89166581
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