Co-opbank Pertama has been a quiet pillar of the Malaysian financial landscape for the last 76 years. Established in 1950 as The Province Wellesley Co-operative Banking Union Limited, it has grown from a regional cooperative into a nationwide institution with over 93,000 members, 35 branches and total assets of RM14.4 billion. Yet, in an industry dominated by the big names, the bank has largely operated with a low profile, known primarily within its niche.

However, a shift in the right direction and steered by CEO Khairil Anuar Mohammad Anuar, one bold move signifies a new chapter. Co-opbank Pertama is preparing to launch the Himayah Structured Covered Sukuk Programme, a landmark transaction that makes it the first cooperative institution in Malaysia to access the capital markets in this manner. This is not just a funding exercise but a calculated and strategic leap forward, designed to transform the bank’s financial architecture, raise its profile and potentially pave the way for the entire cooperative sector.

The Himayah Structured Covered Sukuk Programme is the culmination of a four-year journey to reshape Co-opbank Pertama’s balance sheet. The first tranche, expected to hit the market by August 2026, will be RM500 million with tenures ranging from three to seven years.

For the first time, a cooperative institution is stepping into the capital market with a structured covered sukuk. It is a sign that cooperative banks are not only capable of playing in the big leagues, but are ready to make their mark.

What sets the Himayah Structured Covered Sukuk apart from a regular sukuk? It comes down to one word: protection.

Investors in this programme enjoy dual recourse — they not only have a claim on Co-opbank Pertama as the issuer, but also have a claim on a ring-fenced pool of high-quality personal financing receivables. That means there is an extra layer of security built into the structure.

These underlying assets are Co-opbank Pertama’s bread and butter: personal financing extended primarily to civil servants and cooperative members. What makes them particularly reliable is the repayment mechanism through the Angkatan Koperasi Kebangsaan Malaysia Bhd (Angkasa) salary deduction system. Instalments are deducted directly from customers’ monthly salaries before they even see their paycheques, ensuring consistent and predictable cash flows.

“The Angkasa salary deduction system has been an important and well-established repayment mechanism for many years. It provides a reliable collection platform with a strong repayment track record,” says Khairil Anuar.

He points out that Co-opbank Pertama is also mindful of concentration risk and actively manages it through portfolio diversification across customer segments, financing products and repayment channels. Add to that a comprehensive credit assessment framework and ongoing portfolio monitoring, and you have a structure that investors can feel confident about.

The cover asset pool is monitored monthly to ensure it remains strong. The programme also allows Co-opbank Pertama to refresh the pool with new eligible financing assets over time and includes over-collateralisation features, providing investors with additional comfort.

All of this has contributed to the inaugural tranche receiving a preliminary AA2 rating from RAM Rating Services Bhd, a strong vote of confidence in the quality of Co-opbank Pertama’s assets.

The Himayah programme is not a standalone project. It is a core part of Co-opbank Pertama’s five-year strategic plan, which aims to grow its total assets to RM20 billion by 2030.

One of the bank’s key priorities is diversifying its funding sources beyond traditional deposits. The Himayah sukuk provides access to longer-tenure funding, strengthens liquidity management and supports future financing expansion, digital transformation initiatives and product innovation.

The proceeds will primarily support the continued growth of Co-opbank Pertama’s financing portfolio, providing the flexibility to fund demand across the retail, cooperative and small and medium enterprise (SME) segments while maintaining prudent capital and liquidity management.

With a current financing portfolio of RM8.64 billion and total assets of RM14.4 billion, Co-opbank Pertama is in a strong position to grow. Personal financing remains the core strength, but the bank is also seeing promising growth in mortgages, Ar-Rahnu (Islamic pawnbroking), corporate and SME financing, and auto financing, which was just launched this year and is already gaining traction, according to Khairil Anuar.

At the end of the day, Co-opbank Pertama’s 93,000 members are at the heart of everything the bank does. As a cooperative, the bank is owned by its members, and every initiative is ultimately aimed at creating value for them.

By diversifying funding sources and improving funding efficiency, Co-opbank Pertama can offer more competitive financing solutions, enhance its digital banking capabilities and expand products and services for members. A stronger, more resilient institution means better dividends, better products and better services.

“Success is not measured solely by the amount of sukuk issued,” Khairil Anuar emphasises. “It is measured by our ability to consistently deliver sustainable growth, strengthen financial resilience, expand access to shariah-compliant financing, support the cooperative movement and create lasting value for our members and stakeholders.”

The bank’s digital transformation is already underway. The launch of the HELOCBP mobile app in 2024 has improved customer convenience and deposit stickiness, allowing customers to transact seamlessly without needing to transfer funds to other banks. Khairil Anuar notes that it is a small but essential step in making banking easier for everyday Malaysians.

As the first cooperative institution in Malaysia to obtain a RAM rating and undertake a structured covered sukuk issuance, Co-opbank Pertama has worked closely with regulators including Suruhanjaya Koperasi Malaysia (SKM) and the Securities Commission Malaysia to help the market understand the cooperative model.

Khairil Anuar has faith that this initiative demonstrates that cooperative institutions can access the capital market through robust and well-governed structures. It helps broaden awareness of the cooperative sector’s strengths and capabilities and may open doors for similar initiatives in the future.

The bank has already received inquiries from other cooperatives interested in learning about sukuk issuance. This signals one thing: the sector is taking notice.

“We have come very far. We started by renting a small shoplot and we now have our own building right smack in the heart of Kuala Lumpur,” he said. But for him, the journey is about more than just numbers and buildings — it is about identity.

The Himayah Structured Covered Sukuk is a step forward, a move that keeps its people-centric character while elevating the bank’s professionalism and contemporary appeal. A leap that keeps the integrity of a cooperative bank intact while embracing the sophistication of the modern capital market. After 76 years, Co-opbank Pertama is writing its next chapter — not as a follower, but as a pioneer.