Kuwait's Burgan Bank gets approval to issue up to $500mln unsecured bonds

Proceeds from the issuance to reinforce liquidity

  
Image used for illustrative purpose. Packs of U.S. one hundred dollar bills are counted at a bank in Westminster, Colorado November 3, 2009.

Image used for illustrative purpose. Packs of U.S. one hundred dollar bills are counted at a bank in Westminster, Colorado November 3, 2009.

REUTERS/Rick Wilking

Kuwait's Burgan Bank, a subsidiary of Kuwait Projects Company Holding KSC, said it has received approval from the Central Bank of Kuwait to issue up to $500 million (or its equivalent in other currencies) senior unsecured bond under its Euro Medium Term Note program.

In a statement on the Kuwait stock exchange on Wednesday, the bank said bonds will have either a five-year tenor and a fixed coupon, or a six-year tenor with option to redeem after five years where they will have a fixed coupon rate for the first five years of their tenor and a floating rate for their final year to maturity.

The proceeds from the bond issuance will help it reinforce its long-term liquidity and regulatory liquidity ratios, Burgan Bank added.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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