Burgan Bank, Kuwait’s second largest commercial bank by assets, announced the successful completion of its capital increase through the rights issuance announced earlier.

Burgan Bank Shareholders have subscribed in the capital increase during the designated period started from November 16, 2014 and ended on November 30, 2014 in number of shares in excess of the shares offered for subscription , stated an official press release .

The capital increase has been conclusively closed due to the full coverage of all offered shares. Total Proceeds from the rights issuance reached KWD102.6 million.

The number of shares of Burgan Bank has increased by 216 million shares and was priced at 475 Fils per share( 100 Fils nominal value + a premium of 375 Fils ) , reflecting a 12.44% capital increase in Burgan Bank’s issued & paid- up capital from KWD173.57 million to KWD 195.177 million.

The subscription was initially opened for practicing priority right to subscribe in shares, which was constrained to shareholders recorded in the bank’s shareholders register.

The excess shares to be allocated for general subscription for shareholders and others.

Majed Essa Al Ajeel, the chairman of Burgan Bank commented: "We are very pleased with the results of the rights issue and grateful for both the support and the trust that our shareholders and investors have put in us. The shares were exercised by 125% from our existing shareholders which reflects their continuous trust in the bank’s performance and its future prospects."

"Burgan Bank has successfully issued $500 million in AT1 bonds in the third quarter and now the rights issue of KWD102.6 million comes to complement the integrated capital optimization plan we opted for to strengthen our capital to comply with Basel 3 requirements and to further support our local and regional growth plans" added Al-Ajeel.