Burgan Bank closes a KWD 100,000,000 tier 2 capital issuance
Burgan Bank has successfully closed its KWD 100 million Tier 2 capital issuance. The issuance has both a fixed rate and a floating rate tranche with the fixed rate coupon at 6.00% and the floating rate coupon at 6.20% (CBK discount rate plus 3.95%).
Burgan Bank received strong interest and support for the bond issue from local investors with the order book closing significantly oversubscribed despite challenging market conditions.
The issuance, which is fully compliant with the BASEL III guidelines by Central Bank of Kuwait, will further boost Burgan’s capital adequacy ratio by over 2%.
Mr. Majed Essa Al- Ajeel commented: “We are delighted and thankful for the trust shown by the investment community in Burgan Bank and its prospects. The issuance of the LT2 bonds denominated in Kuwaiti Dinars will help Burgan to further strengthen its capital base. It also stems from our interest and responsibility to promote efficient capital markets practices by attempting to develop a debt capital market in Kuwait and help in building a local yield curve."
AL Ajeel concluded: “I would like to take this opportunity to thank the Central Bank of Kuwait, and Capital Markets Authority for the Continuous cooperation and support”.
KIPCO Asset Management Company (KAMCO), NBK Capital and Gulf Bank acted as joint lead arrangers for the issuance.
Established in 1977, Burgan Bank is the youngest conventional 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. which include Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon),Tunis International Bank – TIB (Tunisia), and fully owned Burgan Bank – Turkey, (collectively known as the “Burgan Bank Group”). Furthermore, Burgan Bank has a present in the UAE through its corporate office (“Burgan Financial Services Limited) which had helped the bank to participate in multiple financing opportunities in the UAE.
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