Kuwait-Mubasher: Burgan Bank issued on Wednesday subordinated bonds worth KWD 100 million ($332 million), according to a bourse statement.
The bonds are compliant with Basel III rules as well as the central bank’s instructions, and is issued under Tier 2 capital, Burgan said.
The bonds programme will be carried out in two stages beginning with an issuance of KWD 30.1 million ($99.97 million) worth of notes with a 6% fixed interest.
The second issuance will cover notes worth KWD 69.9 ($232.16 million) with a 3.95% floating interest based on the discount rate announced by the central bank.
Both bonds issuances are due on 9 March, 2026.
Burgan Bank said that the bond proceeds will be used to boost the capital adequacy ratio (CAR).
Burgan clarified that no direct impact will reflect on the bank’s financial position.
Burgan stock fell 1.45% to 340 fils by the end of Thursday’s trading session, after about 600,100 shares were traded with a value of KWD 42,900.
