Burgan Bank, a leading commercial bank by assets in Kuwait, has completed its capital increase through a rights issuance announced earlier.

The bank’s shareholders have subscribed in the capital increase during the designated period, which started from November 16 and ended on November 30, in number of shares in excess of the shares offered for subscription.

The capital increase has been conclusively closed due to the full coverage of all offered shares and the total proceeds from the rights issuance reached KD102.6 million ($351.4 million).

The number of shares has increased by 216 million shares and was priced at 475 fils per share, reflecting a 12.44 per cent capital  increase in the bank’s issued and paid- up capital  from KD173.5 million to KD 195.1 million.

The subscription was initially opened for practicing priority right to subscribe in shares, which was constrained to shareholders recorded in the bank’s shareholders register.  The excess in shares to be allocated for general subscription for shareholders and others.

Majed Essa Al Ajeel, chairman, said: “We are very pleased with the results of the rights issue and grateful for both the support and the trust that our shareholders and investors have put in us. The shares were exercised by 125 per cent from our existing shareholders which reflects their continuous trust in the bank’s performance and its future prospects.

“Burgan Bank has successfully issued $500 million in AT1 bonds in the third quarter and now the rights issue of KD102.6 million comes to complement the integrated capital optimisation plan we opted for to strengthen our capital to comply with Basel 3 requirements and to further support our local and regional growth plans.” - TradeArabia News Service