Gulf Bank obtains CBK approval to increase its capital

KUWAIT: Gulf Bank has obtained the Central Bank of Kuwait’s approval to increase its issued and paid-up capital by KD 26.1 million through a public offering with rights issue of 260,869,565 new shares at a nominal value of 100 fils in addition to a share premium of 130 fils for each share. The total proceeds will result in an increase in the bank’s capital base by about KD 60 million.

Jassim Mustafa Boodai

All details and procedures related to the share issue will be disclosed after obtaining all the required approvals from the Capital Markets Authority. On this occasion, Gulf Bank Chairman Jassim Mustafa Boodai said: “The capital increase will boost the bank’s capital base and regulatory capital adequacy ratios, enhancing the bank’s ability to pursue future growth opportunities in line with its strategy, with the aim to generate a strong and sustainable long-term value to all its stakeholders.”

Jassim Mustafa Boodai further pointed that as of 30 June 2023, Gulf Bank’s capital adequacy ratio was 16.1 percent and the Tier 1 Ratio was 13.9 percent, both above their regulatory minimums. Thus, total proceeds from the capital increase will further enhance the bank’s regulatory capital ratios. Boodai also highlighted that Gulf Bank remains an ‘A’ rated bank from three major credit rating agencies.

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