NBK Capital, KAMCO and Gulf Bank Joint Lead Managers for Burgan Bank’s KWD 100 million Bond Issue

KUWAIT: March 10, 2016

Watani Investment Company K.S.C.C. (“NBK Capital), KAMCO Investment Company K.S.C.P. (“KAMCO”)and Gulf Bank K.S.C.P.  acted as Joint Lead Managers for the Burgan Bank K.S.C.P.’s KWD 100 million, 10 years non-callable before 5 years, subordinated Tier 2, Basel III – compliant bonds.

KAMCO, Gulf Bank and NBK Capital’s joint press release highlights the subordinated Tier 2 compliant bond issuance with a rating of BBB by Capital Intelligence. This issuance is the second KWD denominated Tier 2, Basel III – compliant bond issuance in Kuwait, providing Burgan Bank with a stronger capital position, which will allow it to continue enhancing earnings and shareholder returns.

The transaction was well received by institutional and high net worth investors. Burgan Bank will use the proceeds from the bond issuance to increase their Tier 2 capital, improving the Bank’s Capital Adequacy Ratio under the Basel III framework and for general corporate purposes.

Mr. Faisal Sarkhou, Chief Executive Officer of KAMCO said, “We are proud to have played an active role in successfully completing Burgan Bank’s Tier 2 compliant bond issuance. We consider this bond issuance to be yet another breakthrough in improving and supporting the local bond market. We progressively work towards developing and enhancing the private sector and Kuwaiti economy through diverse investment opportunities. We value our investment banking team in consistently undertaking roles in key announced transactions, while putting forth their experience and credibility to deliver the best possible outcome during each transaction process.”

Mr. Faisal Al-Hamad, Chief Executive officer of NBK Capital said, “We are pleased to announce Burgan’s successful bond issuance to which NBKC acted as Joint Lead Manager. Burgan Bank has been an active issuer of fixed income securities both locally and internationally, and we are proud to be part of their success. Local debt capital markets have has grown in sophistication in recent years with more diverse products being offered and well received by investors. We congratulate Burgan Bank on yet another successful issuance and look forward to enhanced primary debt capital market activity.”

The Bonds are comprised of two tranches; Fixed and Floating. The Fixed Rate Tranche coupon is fixed for the first five years from date of issue 6.00% per annum payable semi-annually in arrears, and fixed for subsequent periods at CBK Discount Rate (on the date of the fifth anniversary from date of issue) + 3.75% per annum, payable semi-annually in arrears. The coupon rate of the Floating Rate Tranche is equal to CBK Discount Rate + 3.95% payable semi-annually in arrears.

KAMCO, Gulf Bank and NBK Capital would like to show their appreciation and gratitude towards Burgan Bank, the Capital Markets Authority and the Central Bank of Kuwait for their joint commitment and support towards financial institutions. In addition to the mentioned entities, investors also played a crucial role in the bond transaction’s success.