NBK increases its capital by 6.5%

30 March 2016

This move is in line with NBK's plans to maintain healthy capitalization following Basel 3 implementation and CBK requirements
The capital increase will allow NBK to continue capturing growth opportunities as the government's capital spending plan remains intact

National Bank of Kuwait's (NBK) board of directors has agreed to increase the bank's capital through a 6.5% rights issue. The bank will issue 343.96 million shares at 400 fils per share. The issuance price includes an issuance premium of 300 fils per share on top of the par value of 100 fils per share.

Following the capital increase, NBK's issued and paid-in capital will reach KD 563.57 million distributed over 5,635.66 million shares.

The capital increase will take place following final approvals of all regulatory authorities. The rights issue will be offered to the shareholders registered in the bank's records one day prior to the date of calling the capital increase.

Earlier, NBK received all necessary approvals from regulatory authorities as well as its general assembly to increase the bank's authorized capital to KD 600 million.

This step is in line with the bank's plans to maintain healthy capitalization ratios following the implementation of Basel 3 and the regulations of the Central Bank of Kuwait (CBK) in this regards. Also, this increase will allow the bank to continue capturing growth opportunities, especially in Kuwait as the government's capital spending plan remains intact and as NBK continues to be the market leader in the project finance segment.

It is worth mentioning that in 2015, NBK issued USD 700 million in additional Tier 1 securities and KD 125 million in Tier 2 subordinated bonds. The bank's capital adequacy ratio stood at 16.8% as of end-December 2015, comfortably above regulatory requirements.

NBK continues to enjoy collectively the highest ratings among all banks in the Middle East from the three international rating agencies Moody's, Fitch Ratings and Standard and Poor's. The Bank's ratings are supported by its high capitalization, prudent lending policies, and its disciplined approach to risk management, in addition to its highly recognized and very stable management team. NBK was also named among Global Finance's list of the 50 safest banks in the world for the tenth consecutive time.

NBK enjoys the widest banking presence with a local and international network reaching 4 continents. NBK's international presence spans many of the world's leading financial centers including New York, Europe, GCC, Middle East, Singapore as well as China (Shanghai).

-Ends-

About National Bank of Kuwait (NBK):
NBK was founded in 1952 as the first indigenous bank and the first joint stock company in Kuwait and the Gulf Region. NBK reported profits of USD 929.7 million (KD 282.2 million) for 2015 which was among the highest in the Arab region. NBK's total assets were USD 77.8 billion (KD 23.6 billion) at the end of 2015, while shareholder equity stood at USD 8.6 billion (KD 2.6 billion).

NBK is the largest financial institution in Kuwait with effective market dominance in the commercial banking market and has been consistently awarded the highest credit rating of all banks in the region from Moody's, Standard & Poor's, and Fitch Ratings. NBK also stands out in terms of its local and international network, which includes branches, subsidiaries and representative offices in China, Geneva, London, Paris, New York, and Singapore alongside its regional presence in Lebanon, Jordan, Egypt, Bahrain, Saudi Arabia, Iraq, Turkey, and the UAE.

NBK's Long-Term Rating:

· Moody's Aa3

· Fitch Ratings AA-

· Standard & Poor's A+

For more info, please contact Media Relations on:
Sanaa Al-Ghoussayni
Tel: 2259 2817
Fax: 22595804
Email: SanaaGhoussayni@nbk.com-
www.nbk.com