KUALA LUMPUR: The Public Sector Home Financing Board (LPPSA) has announced its maiden RM25 billion sukuk/bond programmes, comprising Islamic Commercial Papers/Islamic Medium Term Notes (ICP/IMTN) and Conventional Commercial Papers/Medium Term Notes (CP/MTN) Programme.
The three-year programmes, to be issued by LPPSA over several tranches to finance the provision of housing loans to civil servants, will be guaranteed by the government, LPPSA Chairman Tan Sri Dr Mohd Irwan Siregar Abdullah said.
“We expect the first issuance for the programme in July and around RM7 billion to RM10 billion to be issued this year, depending on market acceptance,” he told reporters after the launch of the programmes yesterday.
Four banks have been appointed as the joint lead-arrangers and joint lead-managers for the programmes, namely AmInvestment Bank Bhd, CIMB Investment Bank, Maybank Investment Bank and RHB Investment Bank.
Irwan said LPPSA has also appointed three other banks as joint lead-managers, namely Affin Hwang Investment Bank, Bank Islam and OCBC Bank.
“The response from the banking sector and financial institutions to the launch of the bonds and sukuk shows our financial system is strong.
“LPPSA operates independently and will give better and more efficient services to the public sector in terms of housing loans,” he said.
Established under the Public Sector Home Financing Board Act 2015, LPPSA is tasked with managing and administering the provision of housing loans for civil servants in the public sector.
With its formation, LPPSA takes over the Housing Loan Department’s (BPP) main function as the sole provider for the government of home financing for civil servants.
Meanwhile LPPSA Chief Executive Officer Norsimah Ab Wahab said annually, the board approves about 30,000 housing loan applications from public servants.
“The loan interest remains at four per cent.
“Currently, our policy allows for a repayment period of up to 30 years,” she said. — Bernama