KAMCO Investment Company KSCP, Gulf Bank KSCP and Watani Investment Company KSCC (NBK Capital) have partnered as the joint lead managers for the compliant bonds from Burgan Bank, worth over $332 million.
These funds are taken from Burgan Bank’s 10 years non-callable before five years, subordinated Tier 2, Basel III compliant bonds. These bonds give Burgan Banks a strong capital position, improving its shareholder returns and earnings. The bank intends to use the proceeds to improve its Tier 2 capital, raising its Capital Adequacy Ratio within the Basel III framework.
"We are proud to have played an active role in successfully completing Burgan Bank 's Tier 2 compliant bond issuance," Faisal Sarkhou, CEO of KAMCO, said. "We consider this bond issuance to be yet another breakthrough in improving and supporting the local bond market. We progressively work towards developing and enhancing the private sector and Kuwaiti economy through diverse investment opportunities. We value our investment banking team in consistently undertaking roles in key announced transactions, while putting forth their experience and credibility to deliver the best possible outcome during each transaction process."
This transaction has been well received for investors who are institutional or high net worth.
"We are very pleased to have been Joint Lead Manager (JLM) in Burgan Bank 's KD100Mn Tier 2 Bond issuance," César González-Bueno, CEO of Gulf Bank, said. "This opportunity has been a further important step in supporting Kuwait's bond market, and the team at Gulf Bank has worked closely with KAMCO and NBK Capital to ensure its success. We look forward to being actively involved in future investment opportunities such as this one, which helps to underline the strong reputation of Kuwait's banking sector and supports the development of the general economy."