Kuwait’s Burgan Bank Plans 200 Mln Dinar Bond

Kuwait’s Burgan Bank plans to issue a bond worth up to 200 million dinars ($711 million), a local newspaper reported on Monday, citing unnamed sources.

Burgan Bank, which is in the process of buying Eurobank’s Turkish arm, declined immediate comment on the report in al-Qabas newspaper, which said the bond would be marketed before the end of this year.

The bond will have a maturity of between seven and 10 years and yield around 6.00 to 6.25 percent, the report said, adding that Kuwait’s central bank and markets authority would give approval for the issue soon.

Burgan, the commercial banking arm of Kuwait Projects Co (KIPCO), received approval from the central bank last week for its planned purchase of Eurobank Tekfen. It is still awaiting the green light from Turkish authorities.

Burgan said in April it planned to buy a 99.26 percent stake in the bank. It would acquire 70 percent from Tekfen’s Greek partner EFG Eurobank in a $355 million deal; the Kuwaiti lender said it would use internal funds for the purchase. The remaining 29.26 percent would come from Tekfen Holding for an unknown sum.

Reuters