13 March 2016
Kuwait - Burgan Bank K.S.C.P.  ("Burgan Bank" or the "Bank"), has successfully closed its KWD 100 million Tier 2 capital issuance. The issuance has both a fixed rate and a floating rate tranche with the fixed rate coupon at 6.00% and the floating rate coupon at 6.20% (CBK discount rate plus 3.95%).

Burgan Bank received strong interest and support for the bond issue from local investors with the order book closing significantly oversubscribed despite challenging market conditions.

The issuance, which is fully compliant with the BASEL III guidelines by Central Bank of Kuwait, will further boost Burgan's capital adequacy ratio by over 2%. 

Mr. Majed Essa Al- Ajeel commented: "We are delighted and thankful for the trust shown by the investment community in Burgan Bank and its prospects. The issuance of the LT2 bonds denominated in Kuwaiti Dinars will help Burgan to further strengthen its capital base. It also stems from our interest and responsibility to promote efficient capital markets practices by attempting to develop a debt capital market in Kuwait and help in building a local yield curve."

AL Ajeel concluded: "I would like to take this opportunity to thank the Central Bank of Kuwait, and Capital Markets Authority for the Continuous cooperation and support".

KIPCO Asset Management Company (KAMCO), NBK Capital and Gulf Bank acted as joint lead arrangers for the issuance.

-Ends-

About Burgan Bank
Established in 1977, Burgan Bank is the youngest commercial 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.

The Bank has continuously improved its performance over the years through an expanded revenue structure, diversified funding sources, and a strong capital base. The adoption of state-of-the-art services and technology has positioned it as a trendsetter in the domestic market and within the MENA region. Burgan Bank's brand has been created on a foundation of real values - of trust, commitment, excellence and progression, to remind us of the high standards to which we aspire. 'People come first' is the foundation on which its products and services are developed.

The bank was re-certified with the prestigious ISO 9001:2008, making it the first bank in the GCC, and the only bank in Kuwait to receive such accreditation for the third consecutive year. The Bank also has to its credit the distinction of being the only Bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award for twelve consecutive years.  

Burgan Bank, a subsidiary of KIPCO (Kuwait Projects Company), is a strongly positioned regional Bank in the MENA region.

© Press Release 2016