Bourkan Bank closes subscription for 50 million KWD capital increase, covered 1.34 times

Boubyan Bank S.A.K. (“Boubyan” or “the Bank”) announced the successful subscription to its capital increase, with coverage reaching 133.57% of the shares offered for subscription. The subscription period for the capital increase, valued at 50 million Kuwaiti dinars, closed on its scheduled date of September 14, 2026, with total subscriptions amounting to 66.79 million Kuwaiti dinars.

A total of 277.8 million shares of the rights issue were subscribed at a price of 0.180 Kuwaiti dinars per share, comprising 0.100 Kuwaiti dinars as the nominal value and 0.080 Kuwaiti dinars as the issue premium, bringing the total value of the issuance to 50 million Kuwaiti dinars.

Following the successful completion of the subscription process, all applicable regulatory procedures related to the increase of the Bank’s issued and fully paid-up capital were fulfilled. All issued shares were fully allocated, and new shares were issued in accordance with applicable regulatory, subscription, and allocation procedures.

The rights issue witnessed strong participation from eligible shareholders and rights holders. Total subscriptions reached 371.03 million shares, equivalent to an overall coverage ratio of 133.57%, with a total value of 66.79 million Kuwaiti dinars. Specifically, 248.17 million shares were subscribed through the exercise of rights, representing a strong coverage ratio of 89.34%. Additionally, subscription requests were received for an extra 122.86 million shares from the un-subscribed portion of the issuance, of which 29.60 million shares were made available to additional subscription applicants and allocated on a pro-rata basis, achieving an overall allocation ratio of 24.09%.

Following the successful completion of the rights issue, and the allocation and issuance of new shares in accordance with applicable regulatory and institutional procedures, the number of issued and fully paid-up shares of Boubyan Bank will increase by 277.8 million shares, rising from 3,996.4 million shares to 4,274.1 million shares, representing an increase of approximately 7%.

Furthermore, the Bank’s paid-up capital will increase by 27.8 million Kuwaiti dinars, rising from 399.6 million Kuwaiti dinars to 427.4 million Kuwaiti dinars. The remaining amount of 22.2 million Kuwaiti dinars will be recorded as an issue premium, bringing the total increase in shareholders’ equity to 50 million Kuwaiti dinars.

The capital increase is expected to enhance the Bank’s Common Equity Tier 1 (CET1) ratio, Tier 1 capital ratio, and capital adequacy ratio by approximately 60 basis points, subject to the completion of relevant regulatory procedures.

The strengthened capital position will enable the Bank to better pursue its strategic priorities, while maintaining a prudent balance between growth, capital efficiency, liquidity, and risk management.

Commenting on the issuance, Sheikh Abdullah Nasser Al-Sabah Al-Saud, Chairman of the Board of Directors of Boubyan Bank, stated: “The successful completion of Boubyan Bank’s capital increase and the broad participation in the rights issue issuance are clear evidence of our shareholders’ confidence in the Bank, its strategy, and its long-term direction. Our responsibility as the Board of Directors extends beyond short-term performance; it includes consolidating Boubyan Bank’s position and equipping it with the necessary strength, flexibility, and governance foundations to achieve sustainable long-term value. Enhancing the capital base will empower the Bank to pursue its strategic priorities with greater discipline, while continuing to adhere to the highest standards of prudent banking, sound risk management, and responsible governance.”

The enhanced capital base empowers Bank of Kuwait (Boubyan) to better execute its core strategic priorities, which include strengthening its operations in Kuwait, improving asset diversification, advancing digital transformation, and selectively pursuing opportunities that support sustainable and profitable growth.

The bank will continue to deploy capital with discipline, prioritizing areas that enhance its competitive position, increase value delivered to customers, and support long-term sustainable returns, while maintaining a prudent approach to financial management and risk management.

Commenting on the successful closing of the subscription process, Mr. Tony Dagher, Chief Executive Officer of Boubyan Group, said: “The successful completion of the capital increase and the strong demand for the rights issue mark a significant milestone in Boubyan’s journey, reflecting the confidence our shareholders place in the bank’s strategy and future direction. The additional capital enables us to execute our priorities, consolidate our position in Kuwait, improve our balance sheet structure, and selectively invest in areas capable of delivering long-term sustainable value.”

Dagher added: “Our focus remains on disciplined growth and prudent capital allocation. We will continue to direct resources toward opportunities that strengthen our competitive position, enhance customer value, and support sustainable returns, while maintaining the financial strength and risk management discipline that form the cornerstone of our performance.”

KAMCO Invest acted as the issue advisor and underwriting agent for the rights issue. As part of the Boubyan Group, KAMCO Invest leveraged its expertise in investment banking and capital markets services to support the bank through various stages of the subscription and allocation process, contributing effectively to the smooth execution of the rights issue.

Dagher further stated: “The success in completing the rights issue underscores the significant potential of our group. The integration of Boubyan’s banking expertise with KAMCO Invest’s capital markets experience facilitated the efficient execution of the transaction, reflecting our ability to leverage shared strengths and maximize the value of our integrated capabilities within the group.”

Concluding his statement, Sheikh Abdullah Nasser Al-Sabah Al-Sabah, Chairman of the Board of Directors of Boubyan, said: “On behalf of the Board, I extend my sincere thanks and appreciation to the bank’s shareholders for their continued trust and participation in this issue. I also express my gratitude to the Central Bank of Kuwait and the Capital Markets Authority for their constructive cooperation and their supervisory and guiding roles in supporting the process, as well as to the Kuwait Clearing Company, KAMCO Invest in its capacity as issue advisor and underwriting agent, alongside our legal and financial advisors, specialized professional firms, and all internal and external teams whose expertise, cooperation, and commitment contributed to the successful completion of the transaction.”

Sheikh Abdullah added: “The success of the subscription reflects the fruit of collective effort, and we are grateful to everyone who contributed their expertise and commitment to bringing the subscription process to this stage.”

With the successful completion of the capital increase, Boubyan enters its next phase with a stronger capital base and greater capacity to advance its strategic priorities and continue delivering sustainable value to its shareholders, customers, employees, and other stakeholders.