Credit agency RAM Ratings said state-backed mortgage lender Cagamas Bhd will issue 20 billion ringgit ($6.22 billion) in commercial paper and sukuk to refinance existing debt.

The issue will refinance existing debt of 20 billion ringgit expiring June 25, RAM said in a ratings filing with the central bank late on Thursday, assigning Cagamas's new programme its highest P1 rating.

Cagamas, which provides liquidity to primary lenders of housing loans in order to promote home ownership, is Malaysia's second-largest issuer of debt instruments after the government. The company doubled its annual issuance to 9.9 billion ringgit last year.

Cagamas is also looking to branch out regionally, building on its experience with secondary mortgage markets, though details on this "remain scant," RAM said.