Co-opbank Pertama Issues Inaugural RM500 Mln Structured Covered Sukuk

KUALA LUMPUR, Aug 20 (Bernama) -- Co-opbank Pertama Bhd (CBP) has completed the inaugural issuance of RM500 million in Structured Covered Sukuk Wakalah through its special purpose vehicle, Himayah Sukuk Bhd.

The issuance was made under its RM5.0 billion Structured Covered Sukuk Programme based on the Shariah principle of Wakalah Bi Al-Istithmar.

In a statement today, CBP said the transaction marked a significant milestone as it was the first issuance under the programme and the first Structured Covered Sukuk issued by a cooperative banking institution in Malaysia.

The issuance received strong demand from a diversified base of institutional investors, including asset management companies, government-linked institutions, takaful and insurance operators, and financial institutions.

“The transaction achieved a book-to-cover ratio of 2.97 times, demonstrating strong investor confidence in Co-opbank Pertama's financial strength, resilience and long-term growth strategy,” it said.

CBP said the sukuk was priced at profit rates ranging from 4.07 per cent to 4.31 per cent across five tenures of three to seven years, with an average profit rate of 4.20 per cent per annum.

The profit rates were 4.07 per cent for the three-year tenure, 4.16 per cent for four years, 4.22 per cent for five years, 4.26 per cent for six years and 4.31 per cent for seven years.

The proceeds will be used to diversify the bank's funding sources, strengthen liquidity management, and support its financing activities and future growth initiatives, CBP said.

The Sukuk Programme is rated AA2 by RAM Rating Services Bhd (RAM Ratings), reflecting its strong credit profile and structure.

-- BERNAMA