Burgan Bank Group successfully completes its rights issue
Rights issue oversubscribed with healthy shareholder participation
KUWAIT: Burgan Bank, Kuwait’s second largest conventional bank by assets, announced successful completion of its Rights Issue, whereby the bank raised KD 62.55 million of equity by issuing 240.58 million shares. The Rights Issue was oversubscribed with healthy participation from its existing shareholders, underscoring the strength of the franchise.
Majed Essa Al-Ajeel, the chairman of Burgan Bank commented: “We are very pleased with the results of the rights issue and grateful for the support and trust that our shareholders have put in us. The oversubscription reflects their confidence in the bank’s performance and its future prospects.”
The Rights Issue represents a 10.6 percent of increase in the issued share capital of the bank and as a result, the total number of issued shares has increased to 2,500,000,000 shares. The net proceeds of the Rights Issue will be used to further strengthen the Bank’s capital position, and for general corporate purposes.
Burgan Bank K.P.S.C. encompasses operations in Kuwait, and its share from its regional subsidiaries, namely Burgan Bank Turkey, Gulf Bank Algeria, Bank of Baghdad, Tunis International Bank, with one of the largest regional branch networks across Kuwait, Turkey, Algeria, Iraq, Tunisia, Lebanon and representative office in Dubai-United Arab Emirates.
Established in 1977, Burgan Bank is the youngest commercial 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.
The Bank has continuously improved its performance over the years through an expanded revenue structure, diversified funding sources, and a strong capital base. The adoption of state-of-the-art services and technology has positioned it as a trendsetter in the domestic market and within the MENA region. Burgan Bank’s brand has been created on a foundation of real values - of trust, commitment, excellence and progression, to remind us of the high standards to which we aspire. ‘People come first’ is the foundation on which its products and services are developed.
The bank was re-certified with the prestigious ISO 9001:2015, making it the one of the few banks in the GCC and Kuwait to receive such certification for the Fifth consecutive time. The Bank also has to its credit the distinction of being the only Bank in Kuwait to have won the JP Morgan Chase Quality Recognition Award for twelve consecutive years.