Warba Bank of Kuwait has obtained approval from the Kuwait Capital Markets Authority to issue sukuk within the first additional tranche of capital, worth $ 250 million or the equivalent in other currencies.
The bank has confirmed that it will proceed with the issuing procedures and will subsequently disclose any relevant information in this regard.
At the end of September, Warba Bank announced the approval of the Kuwait Capital Markets Authority to increase the bank’s capital from 42.5 million dinars to 200 million dinars, by issuing 425 million new shares.
At the end of August, the bank announced the approval of the Central Bank of Kuwait to increase Warba’s capital.
In an interview with Al-Arabiya today, Thursday, Shaheen Hamad Al-Ghanim, chief executive of Warba Bank, said that next week they will submit a request to the Central Bank of Kuwait to obtain final approval for the increase in capital.
Regarding the issuance of sukuk, he specified that the bank now has sukuk worth 250 million dollars, issued in 2017 and maturing in March 2022, noting that in light of the low levels of interest rates, the bank has decided to issue new sukuk of the same value, and the main objective would be to pay off the first issue.
He continued: “The bank has seen rapid growth in previous years, as total assets reached 3 billion and 600 million dinars.”
He added: “Our aspirations to increase market share must raise capital to strengthen the capital base and keep pace with growth.”
Al-Ghanim pointed out that the main source of growth quest’year was the retail sector, noting that the business sector grew at lower rates in one moment in which the Kuwaiti market was seeing a momentum in the retail finance sector.
On the other hand, the chief executive of Warba Bank stated that the bank has strategic directions in investments and has diversified investments concentrated in the United States and in Great Britain.
He said that most of the sectors the bank focuses on have seen growth, expecting the momentum to continue over the next few years.
On the transfer of ownership of the bank, he explained that the latest amendment was to increase the ownership of the Public Social Security Authority from 7% to 8%, noting that the bank is also owned by 25% of the Kuwait Investment Authority. This in added to a majority shareholder, Mr. Abdullah Al-Shalfan, who has obtained the approval of the Central Bank of Kuwait to increase his stake from 7% to 15%, which will determine how to increase tale participation, while details have not yet been provided. been announced in this regard.
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