Bourkan closes subscription for capital increase worth KD 50 million

Boubyan Bank S.A.K. («Boubyan» or «the Bank») announced the successful subscription to its capital increase, with a coverage ratio of 133.57% of the shares offered. The subscription period for the capital increase, valued at 50 million Kuwaiti Dinars, closed on its scheduled date of September 14, 2026, with total subscription volume reaching 66.79 million Dinars. A total of 277.8 million shares were subscribed to from the pre-emptive rights shares, at a price of 0.180 Dinars per share, comprising 0.100 Dinars as nominal value and 0.080 Dinars as issue premium, bringing the total issuance value to 50 million 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 issuance shares were fully allocated, and new shares were issued in accordance with prevailing regulatory, subscription, and allocation procedures.

**Subscription and Allocation Results**

The pre-emptive rights issuance witnessed strong interest from eligible shareholders and pre-emptive rights holders. Total subscriptions amounted to 371.03 million shares, representing a total coverage ratio of 133.57%, with a total value of 66.79 million Dinars. Specifically, 248.17 million shares were subscribed to through the exercise of pre-emptive rights, representing a strong coverage ratio of 89.34%. Additionally, subscription requests were received for an extra 122.86 million shares from the issuance shares. A total of 29.60 million unsubscribed issuance shares were made available to additional subscription applicants and were allocated on a pro-rata basis, resulting in a total allocation ratio of 24.09%.

**Strengthening the Capital Base**

Following the successful completion of the pre-emptive rights issuance, and the allocation and issuance of new shares in accordance with prevailing 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 Dinars, rising from 399.6 million Dinars to 427.4 million Dinars. The remaining amount of 22.2 million Dinars will be recorded as an issue premium, bringing the total increase in shareholders’ equity to 50 million Dinars.

The capital increase is expected to enhance the Bank’s Common Equity Tier 1 («CET1») ratio, Tier 1 capital ratio, and total capital adequacy ratio by approximately 60 basis points, subject to the completion of relevant regulatory procedures. The strengthened capital base will enable the Bank to better pursue its strategic priorities while maintaining a prudent balance between growth, capital efficiency, liquidity, and risk management.

**Long-term Commitment**

Commenting on the issuance, Sheikh Abdullah Nasser Al-Sabah Al-Sabah, Chairman of the Board of Directors of Boubyan Bank, stated: “The successful completion of Boubyan Bank’s capital increase and the widespread interest in the pre-emptive rights 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 discipline, while continuing to adhere to the highest standards of prudent banking, sound risk management, and responsible governance.”

**Capital Deployment**

The enhanced capital base provides Boubyan Bank with greater capacity to execute its core strategic priorities, which include strengthening its operations in Kuwait, improving asset diversification, advancing digital transformation, and seizing 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 sustainable long-term returns, while maintaining a prudent approach to financial management and risk management.

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

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

**Integration of Banking and Capital Markets Expertise**

Kuwait Investment Company (KIC) Invest managed the pre-emptive rights issuance in its capacity as Issuance Advisor and Underwriting Agent. As part of the Boubyan Bank Group, KIC Invest leveraged its expertise in investment banking and capital markets services for this issuance, supporting the Bank through various stages of subscription and allocation, and contributing effectively to the smooth execution of the pre-emptive rights issuance.

Mr. Dagher added: “The success in completing the pre-emptive rights issuance underscores the significant potential of our Group. The integration of Boubyan Bank’s banking expertise with KIC Invest’s capital markets expertise 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.”

**Acknowledgments**

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

Sheikh Abdullah added: “The success of the subscription is 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 Bank enters its next phase with a stronger capital base and greater capacity to pursue its strategic priorities and continue delivering sustainable value to its shareholders, customers, employees, and all stakeholders.