Mubasher: Burgan Bank has commenced its capital rights offering process on Wednesday, 19 September, to increase up to KWD 62.55 million of additional capital, according to an official statement.

The subscription period for raising Burgan Bank’s capital will end on 10 October 2018.

Burgan Bank, Kuwait’s second largest conventional bank by assets, clarified that the rights issue consists of the issuance of 240.58 million ordinary shares at an offer price of KWD 0.260 each, including a share premium of KWD 0.160.

Capital hike represents an increase of 10.6% in the existing issued share capital of Burgan; the shares will be raised to 2.5 billion from about 2.26 billion, the statement added.

The net proceeds of the rights offering will be used to endorse the capital adequacy ratio (CAR) under Basel III framework, in addition to leveraging Burgan Bank’s business model for general business purposes. 

As registered on 30 June 2018, Burgan Bank’s Core Equity Tier 1 Ratio (CET1) reached 11.0%, while its CAR reached 16.6%.

Chairman of Burgan Bank Majed Al Ajeel, said, “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.”