Burgan Bank K.S.C.P. ("Burgan Bank" or the "Bank"), has successfully closed its KWD 100 million Tier 2 capital issuance. The issuance has both a set rate and a floating rate tranche with the fixed rate promo code at 6.00 % and the drifting rate discount coupon at 6.20 % (CBK discount rate plus 3.95 %).

Burgan Bank received strong interest and support for the bond issue from regional investors with the order book closing considerably oversubscribed despite challenging market conditions.

The issuance, which is fully certified with the BASEL III guidelines by Central Bank of Kuwait, will even more boost Burgan's capital adequacy ratio by over 2 %.

Mr. Majed Essa Al- Ajeel commented: "We are delighted and appreciative for the trust revealed by the investment community in Burgan Bank and its prospects. The issuance of the LT2 bonds denominated in Kuwaiti Dinars will help Burgan to more strengthen its capital base. It likewise stems from our interest and responsibility to ensure effective capital markets practices by attempting to establish a debt capital market in Kuwait and help in developing a regional yield curve.".

AL Ajeel concluded: "I wish to take this chance to thank the Central Bank of Kuwait, and Capital Markets Authority for the Continuous cooperation and support".

KIPCO Asset Management Company (KAMCO), NBK Capital and Gulf Bank functioned as joint lead arrangers for the issuance.