Mubasher: The Central Bank of Kuwait (CBK) has approved for Burgan Bank to use its early redemption choice for the remaining credit of Lower Tier2 bonds that are worth KWD 100 million.
The bonds were issued on 27 December 2018 for ten years, with the possibility of redemption at any time after five years from the issue date, according to a bourse statement issued on Tuesday.
After applying the early redemption option, the remaining credit is expected to total KWD 72.8 million.
Burgan Bank clarified that the capital bonds Tier2 currently form expensive financing sources for the bank; thus, by this early redemption of these bonds, the financing costs will decrease.
