DUBAI: Burgan Bank will open subscription for a KD102.6m ($352.5m) rights issue next Sunday it as looks to fund growth plans and boost its capital base to meet upcoming regulatory changes.
The price of shares under the rights issue, which will run from November 16 until December 14, will be 0.475 dinars each, a statement from the bank — Kuwait’s third-largest lender by assets —said yesterday. This would be a 10.4 percent discount to the current share price. Shares in Burgan Bank closed at KD0.530.
The capital increase will see 216 million new shares issued, with the subsequent increase to paid-up capital worth KD21.6m, it said.
Burgan’s rights issue will be available to existing shareholders as of November 13 on a proportional basis, while the excess will be available for general subscription, Burgan said. “Burgan Bank aims with its capital optimisation plan at adjusting its capital base to comply with Basel III and to further support growth plans,” Majed Essa Al Ajeel, Burgan’s chairman said in a statement.
The CEO, Eduardo Eguren, said the bank would need to raise its capital by 20-30 percent to meet the Basel III global banking industry regulations. Reuters
