Burgan Bank Group Commenced Today its Rights Offering to raise up to KD62.55 million

Kuwait : Burgan Bank, Kuwait’s second largest conventional bank by assets, announced today that it commenced its Capital Rights Offering process to raise up to KWD 62.55 million of additional capital. The subscription period will end on the 10^th of October 2018.

The Bank said that the Rights Offering consists of the issuance of 240,581,530 ordinary shares at an offer price of KWD 0.260 per share which includes a share premium of KWD 0.160 and represents an increase in the total number of issued shares from 2,259,418,470 shares to2,500,000,000  shares, and an increase of 10.6% in the existing issued share capital of the Bank.

The net proceeds of the Rights Offering will be used to improve the Bank’s capital adequacy ratio under Basel III framework, and leveraging the Bank’s business model for general business purposes.  As of 30^th June, 2018 Burgan Bank’s Core Equity Tier 1 Ratio (CET1) reached 11.0% and Capital Adequacy Ratio (CAR) reached 16.6%.

Mr. Majed Essa Al Ajeel, Chairman of the board of Burgan Bank Group said: “We achieved the defined goals in optimizing the usage of the Bank capital which had helped the Bank to deliver good results that are ahead of our target. Now we see the right moment to raise capital so we can enhance the Bank’s capital levels and pursue our strong business pipeline with a focus on prudence and selective growth.”

"On behalf of the Board, I take this opportunity to thank our customers and shareholders for their confidence in our capabilities and their continued support and commitment." concluded Mr. Al-Ajeel.

Burgan Bank Group encompass operations in Kuwait, and its share from its regional subsidiaries, namely Burgan Bank – Turkey, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank, possessing one of the largest regional branch networks with 169 branches across Kuwait, Turkey, Algeria, Iraq, Tunis, Lebanon and representative office in Dubai-United Arab Emirates.

For further details on Burgan Bank K.P.S.C. Rights Offering, please refer to the Bank website www.burgan.com .

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About Burgan Bank

Established in 1977, Burgan Bank is the youngest commercial Bank and second largest 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 in the MENAT region supported by one of the largest regional branch networks.

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. ‘People come first’ is the foundation on which its products and services are developed.

The bank 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 twelve consecutive years.

Burgan Bank, a subsidiary of KIPCO (Kuwait Projects Company), is a strongly positioned regional Bank in the MENA region.

© Press Release 2018