Kuwait Projects Company (KIPCO) said last week it purchased a 51 percent share of Jordan Kuwait Bank (JKB) from its subsidiary Burgan Bank.
The move is an effort by KIPCO as a parent company to both lighten and bolster the Burgan’s balance sheet.
“This transaction is a testament to the support that KIPCO provides to its core operations,” KIPCO Vice Chairman Faisal Al Ayyar said. “The purchase of JKB raises Burgan Bank’s capital adequacy above that required under Basel III. This will allow Burgan Bank to continue to execute its strategy and long-term plan for building shareholder value.”
The KIPCO Group stewards approximately $31.4 billion in assets across the Middle East and North Africa. The company has a broad portfolio of investments, owning stakes in more than 60 companies in 24 countries in industries such as financial services, media, real estate, manufacturing, education and medicine.
Al Ayyar described the move as a way of maintaining balance across the region’s banking industry.
“JKB is a well-established bank that is deeply rooted in the Jordanian banking sector,” Al Ayyar said. “With a history of nearly 40 years of success, it is important to us for the bank to remain within the KIPCO Group. Burgan Bank will continue to work closely with JKB through the group’s network. KIPCO will continue to support all entities within its commercial banking sector and encourage them to benefit from the regional banking network and share group expertise.”
