Co-Opbank Pertama To Issue RM5 Bln Structured Covered Sukuk

KUALA LUMPUR, Sept 5 (Bernama) -- Co-opbank Pertama Malaysia Bhd (CBP) will be issuing a Structured Covered Sukuk of up to RM5 billion as one of the strategies to remain in a consistent and stable financial position.

Its chief financial officer, Nor Aznizam Nor Azmi, said the approval process for the sukuk is ongoing. 

"It needs to be approved by CBP's supervisory bodies of Bank Negara Malaysia and the Malaysia Cooperative Societies Commission," he said on the "Apa Khabar Malaysia" programme on Bernama TV today.

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Nor Aznizam said the bank is confident that investors will receive good returns from the sukuk, which will be issued in stages.

He said the sukuk has received an A3 rating from RAM Rating.

"RAM's A3 rating means that we (CBP) are stable and in a stable financial position to issue the sukuk," he explained.

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Nor Aznizam said CBP's sukuk investments until July 2024 had contributed almost 13 per cent of the bank's total revenue.

"In 2022, sukuk investments contributed eight per cent (to revenue), increasing to 10 per cent in 2023 with total investment assets of RM1.5 billion.

"Additionally, the bank has announced a dividend rate of 6.5 per cent for ordinary shares and 6.78 per cent for Islamic redeemable convertible preference shares (iRCPS) for the financial year ended Dec 31, 2023," he said.

Nor Aznizam added that as part of its promotion to the public, CBP's annual "Hello CBP" campaign will continue until Dec 31, 2024, and its customers can win prizes totalling RM1.5 million.

-- BERNAMA