PETALING JAYA: Cagamas Bhd, the national mortgage corporation, has issued RM500 million three-month Islamic commercial papers (ICPs), its first ICP for the year. Proceeds from the murabahah ICPs will be used to fund the purchase of Islamic financing from the financial system. "Going concern over pace of the scale back in the US Federal Reserve stimulus plans has caused investors to adopt more cautious investment approach as evidenced by decreased secondary market volume in the private debt securities space as compared to corresponding period last year. "Evidently, investors' preference for high grade issues and short duration investment strategy results in strong demand for the company's three-month ICPs particularly from financial institutions with a bid to cover ratio of over 2.4 times and competitively priced at three-month KLIBOR," said its president and CEO Chung Chee Leong in a statement yesterday. The ICPs, which will be redeemed at their full nominal value on maturity, will be listed and tradable under the Scripless Securities Trading System.