Kuwait's Burgan Bank Group opens rights offering | ZAWYA MENA Edition

Kuwait's Burgan Bank Group opens rights offering | ZAWYA MENA Edition:

Burgan Bank, Kuwait’s second largest conventional bank by assets, announced yesterday that it commenced its Capital Rights Offering process to raise up to KD 62.55 million of additional capital. The subscription period will end on the 10th of October 2018.

The bank said that the Rights Offering consists of the issuance of 240,581,530 ordinary shares at an offer price of KD 0.260 per share which includes a share premium of KD 0.160 and represents an increase in the total number of issued shares from 2,259,418,470 shares to2,500,000,000 shares, and an increase of 10.6 percent in the existing issued share capital of the bank.

The net proceeds of the Rights Offering will be used to improve the bank’s capital adequacy ratio under Basel III framework, and leveraging the Bank’s business model for general business purposes. As of 30th June, 2018 Burgan Bank’s Core Equity Tier 1 Ratio (CET1) reached 11.0 percent and Capital Adequacy Ratio (CAR) reached 16.6 percent.