Moody's Investors Service said that Burgan Bank , Kuwait's second largest commercial bank by assets, US$50m additional tier1 capital increase will has a positive impact on the bank's rating.

The additional capital hike will provide the bank with additional support against the credit's risk emerged from its global expansion at highly unrested regions at both political and economic levels, added Moody’s report.

The report which was cited by Arabic daily Alrai, noted that the capital leverage will also enhance the bank plans to comply with Basel II.

In late September, the Kuwaiti lender announced that it  has successfully priced $500 million Perpetual Additional Tier 1 securities.

 
Notably ,  these securities have been structured to comply with the new Basel III global guidelines and is the first issuance of its kind by a Kuwaiti bank.

At this time , Majed Essa Al Ajeel, the chairman of Burgan Bank said "The bank's decision to issue the perpetual tier 1 securities is in line with its plan to enhance our capital ratios in compliance with Basel III and to further achieve appropriate scale and level of business performance to support future growth plans."

Burgan Bank Group has one of the largest regional branch networks with more than 230 branches across Kuwait, Turkey, Jordan, Algeria, Iraq, Tunis, Lebanon and Palestine.