Co-opbank Pertama To Issue RM5 Bln Sukuk

KUALA LUMPUR, Sept 6 (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 diversify its funding source to support the bank's operations and fund its assets.

Its chief executive officer, Khairil Anuar Mohammad Anuar, said the sukuk issuance is one of the CBP's strategies to ensure its financing cost remains stable and consistent.

In a statement today, he said the sukuk is in the process of being approved by the Malaysia Cooperative Societies Commission, the CBP's supervisory body, as well as the Securities Commission Malaysia.

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CBP said it recently received a credit rating of A3/Stable/P2 from RAM Rating Services Bhd (RAM Ratings).

"The rating will assure potential investors of the strength of CBP's profile and will provide the bank with the opportunity to obtain a good issuance rating for the sukuk," it said.

Khairil Anuar said that from January to July 2024, 13 per cent of CBP's revenue came from sukuk investments.

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"In 2022, sukuk investments contributed eight per cent, while in 2023, this has increased to 10 per cent with RM1.5 billion in investment assets," he said.

CBP said it benefitted from sukuk instruments by establishing an active sukuk portfolio as an investment asset.

"Sukuk became one of the CBP's funding sources for expanding the bank's business assets," it said.

Meanwhile, Khairil Anuar 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, as decided in its Annual General Representatives Meeting 2023.

He added that as part of its public promotion, CBP's annual "Hello CBP" campaign will continue until Dec 31, 2024, and its customers can win prizes up to RM1.5 million.

-- BERNAMA