CIMB, Cagamas Complete Malaysia’s First MYOR-i Benchmark Islamic Capital Market Transactions

CIMB and Cagamas completed Malaysia’s first MYOR-i benchmark transactions, introducing pioneering sukuk, profit rate swap and financing structures to accelerate Islamic capital market innovation and benchmark adoption.

CIMB Pioneers MYOR-i Milestone

CIMB Islamic Bank Berhad and Cagamas Berhad have completed three landmark transactions tied to the Malaysia Islamic Overnight Rate (MYOR-i), marking the country’s first benchmark issuances based on the Islamic risk-free rate and advancing the development of Malaysia’s Islamic capital markets.

The transactions comprise a RM300 million one-year MYOR-i-referenced Islamic Medium Term Notes (Sukuk), a RM100 million five-year Islamic Profit Rate Swap (IPRS) with caps and floors, and a RM250 million Islamic Asset Purchase Transaction under the Cagamas Purchase with Recourse (PWR) Programme.

The initiatives support Bank Negara Malaysia’s efforts to promote MYOR-i as the country’s Islamic risk-free rate benchmark while strengthening the infrastructure required for wider market adoption.

CIMB acted as lead manager and execution partner, structuring the transactions while helping establish supporting market infrastructure, including benchmark swap curves, transaction documentation and risk management capabilities designed for MYOR-i-based instruments.

Chu Kok Wei, Chief Executive Officer of Group Wholesale Banking at CIMB, said the transactions broaden the range of Islamic capital market instruments available to corporate issuers while setting an important precedent for future MYOR-i-linked sukuk structures.

He added that the milestone aligns with Bank Negara Malaysia’s aspiration for the financial industry to transition towards MYOR-i as the market benchmark and supports CIMB’s Forward30 strategy of delivering innovative financial solutions.

Cagamas President and Chief Executive Officer Kameel Abdul Halim said the collaboration demonstrates the industry’s commitment to strengthening Malaysia’s Islamic financial market ecosystem while expanding Shariah-compliant funding and risk management solutions.

As Malaysia’s second-largest issuer of debt instruments after the federal government, Cagamas said the transactions also reinforce its role in enhancing market liquidity and financing availability for the country’s housing and financial sectors.

Both organisations said continued collaboration with regulators and industry participants will help accelerate MYOR-i adoption while supporting the resilience and long-term growth of Malaysia’s Islamic financial markets.