Burqan increases its capital by 50 million Kuwaiti dinars through the issuance of rights issues
Burgan Bank has initiated procedures to increase its capital by up to 50 million dinars through the issuance of rights shares. The subscription period opened on August 31, 2026, and will continue until Monday, September 14, 2026.
This move aims to strengthen the bank’s capital base and enhance its financial resilience to support the next phase of its growth strategy. The new capital will underpin the key pillars of Burgan Bank’s strategy, which include strengthening its operations in Kuwait, reallocating assets, and keeping pace with digital transformation, while continuing to invest in core businesses and seizing calculated growth opportunities within robust risk and capital management frameworks.
Eligible shareholders registered in the bank’s records as of the record date, August 30, 2026, as well as rights holders, are entitled to participate in the subscription in accordance with the terms and conditions outlined in the prospectus and the subscription application form.
Eligible shareholders may subscribe for shares equivalent to approximately 7.1% of their current shareholding, subject to the terms and conditions specified in the prospectus and the subscription application form.
For example, every 1,000 shares held by a shareholder entitles them to subscribe for 71 new shares. Each rights share allows the holder to subscribe for one new share during the designated rights subscription period. Qualified subscribers may also apply for additional shares beyond their allocated entitlements, subject to availability and the allocation mechanism defined in the prospectus.
Upon completion of the proposed issuance, the bank’s issued and paid-up capital will increase by approximately 27.78 million dinars, with a share premium of around 22.22 million dinars, bringing total subscription proceeds to nearly 50 million dinars.
Strengthening its capital position will enhance Burgan Bank’s ability to direct its capital toward strategic priorities, support its core activities, and prudently capitalize on promising investment opportunities, while maintaining a balanced approach to risk, liquidity, and capital management. The offering is managed by KIPCO Investment (“KIPCO Invest”), Burgan Bank’s investment arm, acting as the issuance advisor and subscription agent.
The new capital will support the continued implementation of Burgan Bank’s strategic agenda, with a focus on consolidating its operations in Kuwait, advancing its asset reallocation strategy, and accelerating its digital transformation.
Strengthening the bank’s activities in Kuwait remains a cornerstone of its strategy, targeting continuous investment to improve its competitive position, enrich customer relationships, and leverage the strength of its core businesses. Meanwhile, the asset reallocation strategy focuses on directing capital toward areas that deliver attractive risk-adjusted returns, thereby supporting a more efficient and sustainable balance sheet.
At the same time, digital transformation will continue to enhance the bank’s operational model and customer experience, strengthening its ability to deliver innovative, technology-driven banking solutions. Collectively, these priorities aim to solidify Burgan Bank’s position for sustainable growth, ensuring capital is deployed through a disciplined approach grounded in financial prudence and sound risk management.
Sheikh Abdullah Nasser Al-Sabah, Chairman of the Board of Directors of Burqan, said: “Shareholders’ participation in the bank’s capital increase represents a renewed partnership in its future journey, reflecting the importance of aligning growth ambitions with long-term investor interests.” He added: “We were keen to ensure that the rights issue process provided eligible shareholders with the opportunity to maintain their ownership stake in the bank and contribute to its next phase of development. We view this step as a cornerstone for supporting the bank’s future, grounded in a clear vision to deliver sustainable value for shareholders over the long term, while adhering to the highest standards of governance and capital management discipline.”
Al-Nasser continued: “This process is built on Burqan’s nearly five decades of banking expertise, which complements Kuwait Investment Company’s (KIC) 28 years of experience in banking investment services and capital markets. The integration of these expertise and capabilities provides greater depth and scope to support disciplined capital deployment, seize strategic opportunities, and deliver sustainable long-term value.”
For his part, Tony Dagher, Chief Executive Officer of Burqan, said: “The capital increase is a proactive step that will strengthen our ability to execute our strategy from a position of financial strength. It affords us greater flexibility to invest in our core activities, continue advancing our strategic priorities, and selectively and prudently capture promising opportunities, thereby supporting our long-term sustainable growth trajectory.”
He added: “While focusing on disciplined growth and prudent risk management, we will continue to direct capital toward areas that offer the highest potential to support our operations, enhance our services to clients, and deliver sustainable value to our shareholders.”
