DUBAI, May 31 (Reuters) - Gulf Bank
The transaction is compliant with Basel III global banking regulations and will enhance Gulf Bank's supplementary Tier 2 capital, it said in statement.
Pricing was not given in the statement, which said the bond would last for 10 years but contained a clause that would allow the bank to redeem the paper after five years.
"This is the first public issuance for Gulf Bank and will provide the bank with a prudent balance between the different components of its capital, in order to continue enhancing earnings and shareholder returns," the bank said.
KAMCO Investment Company and Kuwait Financial Centre (Markaz) arranged the issue, which was oversubscribed by investors that included institutions and high net-worth individuals, it said.
Gulf Bank is the latest Kuwaiti bank to implement capital-boosting measures this year as institutions seek to bolster their reserves and comply with the new Basel rules.
Gulf Bank's total capital adequacy ratio (CAR) -- a combination of core Tier 1 and Tier 2 capital and a key indicator of financial health -- stood at 15.6 percent at the end of 2015, against a regulatory minimum of 12.5 percent.
($1 = 0.3022 Kuwaiti dinars)
(Reporting by David French; editing by Susan Thomas) ((davidj.french@thomsonreuters.com; +971 4 362 5864; Reuters Messaging: davidj.french.thomsonreuters.com@reuters.net))
The transaction is compliant with Basel III global banking regulations and will enhance Gulf Bank's supplementary Tier 2 capital, it said in statement.
Pricing was not given in the statement, which said the bond would last for 10 years but contained a clause that would allow the bank to redeem the paper after five years.
"This is the first public issuance for Gulf Bank and will provide the bank with a prudent balance between the different components of its capital, in order to continue enhancing earnings and shareholder returns," the bank said.
KAMCO Investment Company and Kuwait Financial Centre (Markaz) arranged the issue, which was oversubscribed by investors that included institutions and high net-worth individuals, it said.
Gulf Bank is the latest Kuwaiti bank to implement capital-boosting measures this year as institutions seek to bolster their reserves and comply with the new Basel rules.
Gulf Bank's total capital adequacy ratio (CAR) -- a combination of core Tier 1 and Tier 2 capital and a key indicator of financial health -- stood at 15.6 percent at the end of 2015, against a regulatory minimum of 12.5 percent.
($1 = 0.3022 Kuwaiti dinars)
(Reporting by David French; editing by Susan Thomas) ((davidj.french@thomsonreuters.com; +971 4 362 5864; Reuters Messaging: davidj.french.thomsonreuters.com@reuters.net))
