"First stage of Burgan's regional expansion now complete," says Burgan Chairman "Deal is catalyst for new business plan," says UGB's CEO Kuwait City,27th June, 2010: Burgan Bank and United Gulf Bank (UGB) today announced that Burgan Bank has completed the purchase of Tunis International Bank from UGB.

The deal - which is part of Burgan's regional expansion strategy - first announced in 2008 - involved the purchase of Jordan Kuwait Bank, Gulf Bank Algeria, Bank of Baghdad and Tunis International Bank from UGB for a total of US$ 725 million (KD 194 million).

Burgan Bank and UGB said that the announcement was welcome news.

Burgan Bank Chairman, Mr Majed Eisa Al Ajeel, said:

"We are delighted to have completed the first stage of our regional expansion strategy by the acquisition of Tunis International Bank. This deal further extends our presence in North Africa and gives us a unique opportunity to develop our banking activity in Tunisia. The deal also marks the completion of the first stage in our aggressive regional expansion strategy and we are delighted with the progress our regional banking network is making."

UGB's Chief Executive Officer, Mr David Rhodes, said:

"We are delighted that we have now completed the agreement with Burgan Bank for the sale of our regional operations. The deal will allow us to move forwards with our new business plan and is a catalyst for our development as one of the region's leading investment banks and asset management companies."

- Ends -

About Burgan Bank
Burgan Bank is a subsidiary of KIPCO (Kuwait Projects Company). The youngest and most dynamic commercial bank in the State of Kuwait, established in 1977, the Bank has acquired a leading role in the retail, corporate and investment banking sector through innovative product offers and technologically advanced delivery channels. It has continuously improved its performance over the years by applying an expanded revenue structure, good asset quality, diversified funding sources and a strong capital base. The adoption of state-of-the-art services and ground-breaking technology has positioned it as a trendsetter in the domestic market. At present it enjoys a wide reach through our network of 22 branches and over 80 ATM's making it one of the widest ATM networks in the GCC. 

The 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 and are further augmented by its three pillars of innovative technology, staff competency and customer service. It is committed to offering an enhanced banking experience.

The Bank was recertified and is still the only bank in the GCC with ISO 9001:2000 certification in all its banking businesses. It also has to its credit the distinction of being the only bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award, 10th year in succession and was also acknowledged as the 'Best Local Private Bank' in Kuwait in the Fourth Annual Euromoney Private Banking Survey 2007. Further, for two consecutive years, it was conferred the COMMERZBANK Recognition Award, for maintaining high standards of quality, efficiency and reliability while processing Euro currency transactions as well. The Bank's commitment to uphold best practices was recognized when it won the region's first Hawkamah-UAB Bank Corporate Governance Award 2007 while its marketing excellence was recognized as amongst the best in the region by the Middle East Business Achievement Awards 2007.

It's steadily improving financial performance was acknowledged by Standard & Poor's Ratings Services which revised its outlook on the Bank from stable to positive in addition to affirming its 'BBB+' long-term and 'A-2' short-term counterparty credit ratings on the Bank. Further, Moody's Investor Services also upgraded the Bank's FSR rating from D+ to C- recently. Capital Intelligence too acknowledged the improved financial profile and upgraded the Bank's Financial Strength Ratings from BBB to A-, the Foreign Currency Short Term rating as A2 and the Foreign Currency Long Term rating from BBB to A-

About UGB
UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment banking and asset management companies. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. As of 31 March 2010, assets under management exceeded US$ 7.2 billion (31 December 2009: US$ 7.2 billion). UGB's core subsidiaries and associates include: Al Dhiyafa Investment Company, Al Sharq Financial Brokerage Company, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Millennium Private Equity, North Africa Holding Company, Royal Capital Company, Syria Gulf Bank, Tunis International Bank, United Networks (formerly United Cable Company), United Gulf Bank Securities Company, United Gulf Financial Services - North Africa, United Healthcare Company, United Industries Company and United Real Estate Company.

The KIPCO Group is one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$ 18.6 billion under management or control. The Group has substantial ownership interests in a portfolio of over 50 companies employing over 8,000 people operating across 21 countries.  The company's main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in the real estate, industry, aviation and the management & advisory sectors.

For more information, please contact:
Burgan Bank:
Fadi Matar
General Manager & Chief Marketing Officer
Corporate Communications Group
Telephone: +965 2298 8400
Mobile: +965 67030069
Fax: +965 2298 8419
Email: fadim@burgan.com
Web: www.burgan.com

UGB
Telephone: +973 1753 323
Email: info@ugbbah.com

© Press Release 2010