KUWAIT: Burgan Bank K.P.S.C. successfully redeemed its KD 100 million Subordinated Tier 2 bonds due 9 March 2026 (bonds), in accordance with the terms and conditions of their issuance. The terms and conditions of the bonds’ issuance stipulate that Burgan Bank may exercise a call option to redeem the bonds five years from the date of their issuance or on any interest payment date thereafter.
The fixed and floating-rate tranches of the redeemed bonds carried coupon rates of 6.00% and 3.95% plus CBK Discount Rate, respectively. The redemption came after a US$500 million Subordinated Tier 2 Capital Securities issuance in the international debt capital markets in December 2020. The new bonds were priced at a fixed-rate of 2.75% and have an eleven-year tenor with a call option for redemption after six years from the date of their issuance (11NC6) or on any interest payment date thereafter. The new bonds also have an A- rating by Fitch. The new bonds comply with the Basel III regulatory framework, as adopted by the Central Bank of Kuwait.
The prior written approval of the Central Bank of Kuwait for Burgan Bank to exercise the call option was issued on 28 October 2020.
Kamco Investment Company K.S.C.P. (Kamco Invest) was mandated as the Fiscal and Principal Paying Agent for the bonds, and has advised on and managed the bonds’ redemption process.
Burgan is rated A+ by Fitch, A3 by Moody’s and BBB+ by S&P, and is a regular issuer in the international debt capital markets. All of the Bank’s previous bond issuances have been successfully settled in accordance with the terms and conditions of their offering.
For the avoidance of doubt, this communication is not an offer to purchase or sell financial instruments.
For further information, please contact:
Kamco Invest on +965 2233 6982, or by email at burganredemption@kamcoinvest.com
About Burgan Bank
Established in 1977, Burgan Bank is the third largest bank 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, collectively known as the “Burgan Bank Group”, in the MENAT region supported by one of the largest regional branch networks, which includes Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon), Tunis International Bank – TIB (Tunisia), and Burgan Bank Turkey. Furthermore, Burgan Bank has a presence in the UAE through its corporate office, Burgan 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. 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. ‘Driven by You’ is the foundation on which its products and services are 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 certification for the fifth consecutive time. 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 twenty consecutives years.
Burgan Bank is a majority owned subsidiary of KIPCO (Kuwait Projects Company), one of the largest holding companies in the Middle East and North Africa.
© 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.
