Burgan Bank Group Commenced Today Its Rights Offering to Raise up to Kd62.55 Million

Press release

Published September 20th, 2018 - 03:44 GMT

Mr. Majed Essa Al Ajeel, Chairman of the board of Burgan Bank

Burgan Bank, Kuwait’s second largest conventional bank by assets, announced today that it commenced its Capital Rights Offering process to raise up to KWD 62.55 million of additional capital. The subscription period will end on the 10^th of October 2018.

The Bank said that the Rights Offering consists of the issuance of 240,581,530 ordinary shares at an offer price of KWD 0.260 per share which includes a share premium of KWD 0.160 and represents an increase in the total number of issued shares from 2,259,418,470 shares to2,500,000,000 shares, and an increase of 10.6% in the existing issued share capital of the Bank.

The net proceeds of the Rights Offering will be used to improve the Bank’s capital adequacy ratio under Basel III framework, and leveraging the Bank’s business model for general business purposes. As of 30^th June, 2018 Burgan Bank’s Core Equity Tier 1 Ratio (CET1) reached 11.0% and Capital Adequacy Ratio (CAR) reached 16.6%.

Mr. Majed Essa Al Ajeel, Chairman of the board of Burgan Bank Group said: “We achieved the defined goals in optimizing the usage of the Bank capital which had helped the Bank to deliver good results that are ahead of our target. Now we see the right moment to raise capital so we can enhance the Bank’s capital levels and pursue our strong business pipeline with a focus on prudence and selective growth.”

"On behalf of the Board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities and their continued support and commitment." concluded Mr. Al-Ajeel.

Burgan Bank Group encompass operations in Kuwait, and its share from its regional subsidiaries, namely Burgan Bank – Turkey, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank, possessing one of the largest regional branch networks with 169 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative office in Dubai-United Arab Emirates.

For further details on Burgan Bank K.P.S.C. Rights Offering, please refer to the Bank website www.burgan.com.

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.