Al Ahli: Authorized Capital Raised to 600 Million Dinars

The Extraordinary General Assembly of Al Ahli Bank of Kuwait Group approved an increase in the group’s authorized capital from 274.865 million Kuwaiti dinars to 600 million Kuwaiti dinars, distributed across 6 billion shares, each with a par value of 100 fils. It also approved that the Board of Directors, by its decision, may increase the issued and fully paid-up capital within the limits of the authorized capital, call for such increase, and register the increase in the issued and paid-up capital in the Commercial Register, setting its terms and conditions in full or in part, in one or more installments within the authorized capital. This decision shall specify the amount and methods of the increase, the date or dates of the call, and all other terms and provisions, including the subscription, trading, maturity, and distribution periods related to the bank’s capital increase. The General Assembly authorized the Board of Directors to take all necessary measures in this regard, granting existing shareholders pre-emptive rights to subscribe to the cash increase in proportion to their shareholding in the bank’s capital for a period of no less than 15 days from the opening of the subscription window. Thereafter, the Board of Directors may extend the exercise period for pre-emptive rights and allocate any unsubscribed shares to existing or new shareholders in accordance with legal provisions, and dispose of any fractional shares resulting from the increase as it deems appropriate, while complying with regulatory requirements.

The assembly also approved empowering the Board of Directors, in cases other than capital increases, to issue free bonus shares distributed to shareholders; to decide on adding an issue premium at each new increase or subscription; and to determine the value of such premium to be added to the nominal value of the increased shares. Shareholders also approved that the Board of Directors may engage any suitable entity to implement all or part of the above, subject to fulfilling requirements and obtaining necessary approvals in accordance with laws, regulations, and decisions and directives of regulatory authorities.

Article 4 of the Articles of Association of Al Ahli Bank of Kuwait was amended to read: “The purposes for which the company was established are as follows: traditional banking,” replacing the previous wording: “Engaging in all commercial banking services and operations, whether on its own account or on behalf of others.” Article 5 of the Articles of Association and Article 6 of the Memorandum of Association were amended to state: “The bank’s authorized capital is set at 600 million Kuwaiti dinars, distributed across 6 billion shares, each with a par value of 100 fils, with all shares being cash-funded.” The issued and paid-up capital of the bank was specified as 274,865,010.800 fils, distributed across 2,748,650,108 shares, each with a par value of 100 fils, with all shares being cash-funded.

The General Assembly was attended by shareholders representing 86.667% of the capital, and was held at the group’s headquarters, chaired by Board of Directors Chairman Talal Mohammad Reza Bahbahani, with the participation of Group Chief Executive Officer Gilles Jean van der Toel. The assembly also approved amendments to Articles 4 and 5 of the Articles of Association and Article 6 of the Memorandum of Association.

On this occasion, Bahbahani affirmed that the General Assembly’s approval to raise the authorized capital of Al Ahli Bank of Kuwait Group represents a fundamental milestone supporting its readiness to transition to a new stage of growth, expansion, and capacity development. He added that this measure provides the bank with long-term flexibility and strength to support its long-term strategy, prepare for capital base increases as the group’s business volume grows, respond to financing opportunities, and meet regulatory requirements. He clarified that this is a preparatory measure within the framework of corporate governance, noting that the 600 million Kuwaiti dinars figure represents the maximum authorized capital and does not commit the bank to issuing capital at that value. He continued: “The decision enhances the bank’s flexibility and readiness during the preparation and implementation of its new five-year plan, enabling the Board of Directors to respond to any future capital needs within the authorized ceiling, in accordance with necessary regulatory approvals and requirements.” Bahbahani concluded his statement by saying: “The great trust placed in us by shareholders imposes on us the responsibility to manage the bank responsibly and create long-term added value, as we continue our efforts to achieve growth, maintain flexibility, and uphold high operational efficiency.”

For his part, van der Toel stated that the purpose of increasing the authorized capital is to enhance growth and expansion in project financing, both in the State of Kuwait and in countries where the group operates. He said: “The importance of this step lies in raising the legal ceiling for capital, paving the way for management to request an increase in paid-up capital or open a subscription window as soon as opportunities arise, thereby shortening execution time and obtaining required approvals.” He considered that the significance of this step lies in enhancing the bank’s proactive readiness and granting it greater flexibility to handle future requirements with precision.

Van der Toel emphasized Al Ahli Bank of Kuwait Group’s commitment to continuing its prudent strategic approach and applying the highest standards of corporate governance and risk management, to ensure sustainable growth and consolidate its position as a preferred choice for existing clients and attract new ones. He stated: “We will continue investing in future technologies, strengthening digital infrastructure, adopting artificial intelligence solutions, developing financial products that meet customer aspirations, and building a flexible business model capable of adapting to various economic changes, ensuring continued leadership and excellence.” He added: “We will continue to consolidate our competitive position in the banking sector, seize promising opportunities, and meet the aspirations of customers and shareholders, while continuing to support the Kuwaiti economy and our firm commitment to shareholders to keep working diligently to achieve further accomplishments that reinforce the position and leadership of Al Ahli Bank of Kuwait Group in the banking sector.”

Van der Toel concluded that Al Ahli Bank of Kuwait Group continues to implement its vision and will not merely keep pace with developments but aims to provide rewarding and sustainable returns for all its stakeholders, while maintaining its position among the fastest-growing and most influential financial and banking institutions, and achieving new horizons of success.

Bahbahani and van der Toel thanked all regulatory authorities in the State of Kuwait, the United Arab Emirates, and the Arab Republic of Egypt for their continuous support of the group and the banking sector, as well as all shareholders for their ongoing trust. They praised the efforts of all employees that contribute to achieving the desired objectives.