Middle East
GDN Online App available on
App Store / Play Store
Gulf Daily News Gulf Daily News
Gulf Daily News Gulf Daily News Gulf Daily News Gulf Daily News Gulf Daily News
Friday, February 22, 2019 ARCHIVES  |  SEARCH  |  POST ADS  |  ADVERTISE  |  SUBSCRIBE   |  LOGIN   |  CONTACT US

Burgan Bank closes $334m bond issue

Kuwait Business

 Kuwait's youngest lender Burgan Bank said it has successfully closed its KD100 million ($334 million) Tier 2 capital issuance.

The issuance has both a fixed rate and a floating rate tranche with the fixed rate coupon at six per cent and the floating rate coupon at 6.2 per cent (CBK discount rate plus 3.95 per cent).
Burgan Bank received strong interest and support for the bond issue from local investors with the order book closing significantly oversubscribed despite challenging market conditions.

The issuance, which is fully compliant with the Basel III guidelines by Central Bank of Kuwait, will further boost Burgan’s capital adequacy ratio by over two per cent.  

Majed Essa Al Ajeel said the bank was thankful for the trust shown by the investment community in Burgan and its prospects.

"The issuance of the LT2 bonds denominated in Kuwaiti Dinars will help Burgan to further strengthen its capital base. It also stems from our interest and responsibility to promote efficient capital markets practices by attempting to develop a debt capital market in Kuwait and help in building a local yield curve," stated Al Ajeel.

Kipco Asset Management Company (Kamco), NBK Capital and Gulf Bank acted as joint lead arrangers for the issuance.-TradeArabia News Service

You Might Like