Burgan Bank Launches First Certificates of Deposit Program in Kuwait

Burgan Bank announced the establishment of a strategic USD 500 million Certificates of Deposit (CDs) program in Kuwait, rated 'F1' by Fitch Ratings which is equivalent of “A”. This short-term debt instrument, spearheaded by the Bank’s Treasury team, serves as a strategic mechanism for the bank to maintain a diversified source of liquidity, optimize the balance sheet and allow for sufficient access to funding.
The program has been established in coordination with Mizuho, as the Lead Arranger, whereas MUFG Bank, the Industrial and Commercial Bank of China (ICBC), the Korea Development Bank (KDB), the Development Bank of Singapore (DBS), and Standard Chartered Bank (SCB) act as a Dealers.
CDs are short term debt instruments with maturities up to one year. They are primarily popular with Asian investors and can be priced at fixed, floating or zero coupon (at a discount). 
Mr. Tony Daher, Group Chief Executive Officer at Burgan Bank, commented “We are proud to introduce our new CD program and are pleased with the positive reception it has received. This program reinforces our commitment to achieving the strategy aimed at growth in both the local and regional markets. This program demonstrates our commitment to growth and strengthens our leading position in the domestic and regional markets.”
Mr. Daher added: “In addition to strengthening our relationships in the global financial and investment markets, the inclusion of CD program to Burgan Bank’s portfolio enables the bank to attract new segments of investors in the global market and enhances the bank’s risk profile and resilience against market fluctuations.”
Mr. Abdullah Marafie, General Manager of Treasury and Financial Institutions at Burgan Bank, added: “The launch of CD program aligns with the group’s policies that aim to diversifying the sources of funding, which enhances liquidity stability and protects the bank from any financial shocks. This program will contribute to the bank’s adherence to Basel III ratios including Liquidity Coverage Ratio (LCR), Loan to Deposit Ratio (LDR), and Net Stable Funding Ratio (NSFR).”
Mr. Marafie added: "The program has been carefully designed to expand Burgan Bank's presence in the region, particularly in Asian markets where short-term debt instruments are in high demand. Building relationships with foreign investors also helps to open broader horizons for securing long-term financing. In line with our commitment to meeting market needs, this program was developed based on comprehensive studies and research to ensure that our products align with our position as a trusted financial partner."