The National Bank of Kuwait (NBK), the emirate’s largest lender, said it has launched a rights issue to raise its capital by 10 per cent to meet future expansion plans.

NBK was issuing about 327.1 million new shares each valued at 500 Kuwaiti fils
($1.76) for registered shareholders, the bank said in a statement posted on the Kuwait Stock Exchange’s website.

Shares in the bank, which hopes to net $576 million from the process, were trading at 1.42 dinars on Monday.

The rights issue ends on October 21.

In March, NBK raised its capital by 10 per cent through distributing bonus shares.

The bank’s capitalisation after the rights issue would be $1.27 billion.