Kuwait: Burgan Bank (“Bank”) announced that it has successfully completed its capital increase of KD 71.25 million, to support its business growth and further strengthen its capital levels. The rights issue was well-received, and the transaction was oversubscribed, without the need for public offering or underwriting. The Bank offered 375 million shares in the rights issue which was concluded within 15 days. The capital increase process was led by Kamco Investment Company K.S.C.P. (Kamco Invest) as the Lead Manager and Subscription Agent, and Kuwait Financial Centre K.P.S.C. (Markaz) as the Joint Lead Manager and Underwriter.
With the completion of the capital increase, the Bank’s issued and paid-up capital increased from KD 275.625 million to KD 313.125 million. The Bank will use this capital increase to drive its growth strategy in Kuwait, its core market, and support cautious growth in its key subsidiaries’ markets as well as to increase its regulatory capital base.
Majed E. Al-Ajeel, Chairman of Burgan Bank Group, commented on the success of the subscription process, saying, “We are thrilled by the great response from all shareholders throughout the subscription process, which resulted in unprecedented levels of demand with subscription levels of more than 220%. This achievement is evidence of the shareholders’ confidence in the Bank’s strong financial position and its growth plans. I would like to commend the expertise and professionalism of Kamco Invest and Markaz, and thank the Central Bank of Kuwait, Capital Markets Authority, and Boursa Kuwait for their ongoing support and guidance, which collectively led to the successful outcome of this transaction.”
Masoud M. J. Hayat, Vice Chairman and Group CEO of Burgan Bank Group, added, “The capital increase will strongly support the Bank’s strategy enabling it to achieve its growth plans, while improving both the financial and operational performance. Burgan Bank will continue to pursue its long-term transformation journey that focuses on recalibrating its operating model, enhancing its technological infrastructure, and accelerating its digital transformation plan, to maintain its competitive edge and grow its market share. The capital increase will also enable the Bank to grow its credit facilities offerings to SMEs and corporate customers, effectively contributing towards driving economic growth in Kuwait.”
The Bank’s most recent financial results showcased a solid financial performance, with a reported net income attributable to shareholders of KD 40.3 million for the first nine months of 2021, with a strong growth of 23.6% compared to same period of the previous year. The financial results also underscored solid operating revenue amounting to KD 166.6 million, which were supported by high non-interest income of KD 73.3 million (up 29.5% year-on-year), and the lower loan loss provision levels that improved by 11.6% compared to the same period in 2020.
About Burgan Bank
Established in 1977, Burgan Bank is currently the third largest bank by assets in Kuwait. From its earliest days, the Bank has significantly focused on the corporate and financial institution sectors, in addition to diversifying its offering to cater to its growing retail and private banking customer base.
Burgan Bank has majority-owned subsidiaries, collectively known as the “Burgan Bank Group”, in the MENAT region. This Group is supported by one of the largest branch networks across the region and includes: Gulf Bank Algeria – AGB (Algeria), Bank of Baghdad – BOB (Iraq & Lebanon), Tunis International Bank – TIB (Tunisia), and the fully owned Burgan Bank Turkey. Furthermore, Burgan Bank has a presence in the UAE through its corporate office, Burgan Bank Financial Services Limited.
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. Moreover, Burgan Bank’s brand has been built on a foundation of real values – trust, commitment, excellence, and progression – which serve as a reminder of the high standards to which the Bank always aspires. In fact, the Bank’s core philosophy of ‘Driven by You’ is the foundation on which its products and services are continuously developed.
The Bank obtained the ISO/IEC 27001: 2013 Information Security Management Systems certificate (ISMS) and was re-certified with the prestigious ISO 9001:2015, making it the one of the few banks in the GCC and Kuwait to receive such a certification for five consecutive times. The Bank also has the distinction of being the only Bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award for twenty consecutives years.
Burgan Bank is a majority-owned subsidiary of KIPCO (Kuwait Projects Company), one of the largest holding companies in the MENA region.
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.