BURGAN BANK receives regulatory approvals for Capital Increase

Press release

Published November 10th, 2014 - 06:16 GMT

Al Bawaba

Burgan Bank, Kuwait’s second largest commercial bank by Assets, announced today the receipt of all regulatory approvals for the increase in the bank’s issued and paid up capital by KD 21,600,000/- (twenty one million and six hundred thousand Kuwaiti Dinars) distributed over 216,000,000 shares (two hundred and sixteen million shares) with a nominal value of 100 Fils per share. The issuance premium has been priced at 375 Fils per share reflecting a share price of 475 fils (nominal value of 100 fils + premium of 375 fils) .

Subscription begins from November 16, 2014 and ends in December 14, 2014 . The capital increase shares will be specified for the shareholders registered in the bank’s shareholders register – as on the trading day prior to the date of beginning the subscription period – according to the percentage of ownership shares, and the excess in shares will be allocated for general subscription for shareholders and others.

Mr. Majed Essa Al Ajeel, the chairman of Burgan Bank commented that: ‘Burgan Bank Group aims with its capital optimization plan at adjusting its capital base to comply with Basel 3 and to further support growth plans. This rights issuance is a continuation of this plan that has started earlier this year and we are confident of our shareholders continuous trust and support in the bank’s vision and progressive approach”

“During the third quarter of this year, the bank issued the AT1 bond which is considered the first of its kind to be issued by a Kuwaiti bank as one of the steps in its innovative capital optimization plan. We have always believed that it is our responsibility to advocate the development of an efficient capital market hence our innovation in our capital optimization plans. Burgan Bank has issued in the past four years many debt instruments in USD and KD in an attempt to establish a yield curve in Kuwait and further develop the debt capital market.” Added Mr. Al-Ajeel

Burgan Bank Group has one of the largest regional branch network with more than 233 branches across Kuwait, Turkey, Jordan, Algeria, Iraq, Tunis, Lebanon and Palestine. The wide footprint was achieved after the bank’s decision to diversify into faster growth markets. “Burgan Bank Group is reaping the benefits of its diversification strategy as the international operations now contribute to 51% of the group’s revenues.” Concluded Mr. Al-Ajeel

Background Information

Burgan Bank

Established in 1977, Burgan Bank is the youngest conventional Bank and second largest by assets in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail, and private bank customer base. Burgan Bank has majority owned subsidiaries in the MENAT region supported by one of the largest regional branch networks. which include Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon),Tunis International Bank – TIB (Tunisia), and fully owned Burgan Bank – Turkey, (collectively known as the “Burgan Bank Group”). Furthermore, Burgan Bank has a present in the UAE through its corporate office (“Burgan Financial Services Limited) which had helped the bank to participate in multiple financing opportunities in the UAE.