Latest News
- Internet Censorship Pact Condemned By MP-elect Bushehri
- Police Arrest Two Men Previously Convicted In Misdemeanor Cases
- The Theft Of 50 Birds In Kuwait’s Barr Abdaliyah Area
- Anti-Corruption Authority Efforts Embrace An Integrated Work Sys...
- European Union Keen On Exempting Kuwaitis From Schengen Visa
- Expat Admits Killing His Compatriot In A Quarrel Over Cash
- Decomposed Corpse Of A Girl Found In Nugra Flat
- 4.4% Private Sector Employment Sparks Concerns In Kuwait
- CSC Separates Job Appointments From Specific Agencies
- Municipality Shuts Store And Issues 23 Violations
- Kuwaiti Tweeter Jailed For Insulting Rulers, Judiciary, And Nati...
- MoH Opens Registration For Scholarships And Study Leaves
Kuwait Burgan Bank Sells Stake In Jordanian Bank To Parent Firm
Kuwait's Burgan Bank said on Wednesday it would sell its controlling stake in Jordan Kuwait Bank to another subsidiary of parent firm Kuwait Projects Company (KIPCO).
The deal, involving Jordan's fourth-largest bank by assets according to Thomson Reuters data, is part of a series of steps being taken to boost Burgan's capital in preparation for the introduction of the Basel III global finance rules, Burgan said in a bourse filing.
The transaction will reduce Burgan's risk-weighted assets by more than 500 million dinars ($1.65 billion) and enhance the total capital adequacy ratio (CAR) of Kuwait's third-largest bank by assets to over 15 percent at the end of 2015.
Burgan's CAR, a key measure of a bank's health, stood at 12.7 percent at the end of September, according to an investor presentation on its website.
Neither Burgan nor KIPCO, in a separate statement, disclosed which KIPCO subsidiary would acquire the 51.19 percent stake. KIPCO is Kuwait's largest investment firm and has interests in banking as well as media, industrials and real estate.
The sale would take place in two phases, with 25.46 percent sold on Wednesday, with the remaining 25.73 percent transferred on Thursday, the bourse filing added. Burgan has already undertaken a number of capital-boosting measures in recent months.
Earlier in December, it said it would repurchase bonds worth around $362.9 million under a plan to redeem up to $730 million of subordinated bonds which would no longer be eligible to boost the bank's capital under Basel III rules. Burgan also completed a $353 million rights issue at the end of 2014.
Â
SOURCE : ARABIANBUSINESS
Trending News
-
Kuwait Implements Home Biometrics Services Ahead O...
14 April 2024
-
Kuwait Airways Provides Update On Flight Schedule...
14 April 2024
-
Kuwait Airways Introduces Convenient Home Luggage...
15 April 2024
-
Expat Residency Law Amended By Kuwait Ministerial...
20 April 2024
-
Gathering For Eid Al-Fitr Prayers: Kuwaiti Citizen...
10 April 2024
-
Two Expats Are Arrested For Stealing From Salmiya...
17 April 2024
-
An Egyptian Expat Dies At Kuwait's Airport
11 April 2024
-
Bay Zero Water Park Kuwait: Summer Season Opens Ei...
11 April 2024
-
Temperature Increases Cause Electricity Load Index...
21 April 2024
-
Kuwait Airways Resumes Flights To Beirut And Oman...
15 April 2024
Comments Post Comment