Burgan Bank receives approvals to complete sale of Bank of Baghdad

Press release

Published January 12th, 2023 - 10:18 GMT

Burgan Bank receives approvals to complete sale of Bank of Baghdad

Mr. Masoud M J Hayat GCEO.

Highlights

Burgan Bank has received approvals from Central Bank of Iraq to sell its ownership stake of 51.8% in Bank of Baghdad to Jordan Kuwait Bank.

Burgan Bank has received approvals from Central Bank of Iraq to sell its ownership stake of 51.8% in Bank of Baghdad to Jordan Kuwait Bank. Burgan has therefore completed all the necessary regulatory approvals to execute and conclude the sale.

Burgan has agreed the transaction terms with the buyer and is now expected to complete all required legal documentations and Iraqi Stock Exchange requirements over the next few weeks.

Mr. Masoud M.J. Hayat, Vice Chairman and Group CEO of Burgan Bank commented saying “The decision of selling our stake in Bank of Baghdad was taken to ensure the best outcome for the Bank and for our shareholders. This sale is in line with Burgan Bank’s pursuance of strategic asset reallocation, which is one of our key strategic priorities and it will enable us to focus on Burgan’s core market, Kuwait.”

‘This transaction shall improve Burgan’s financial metrics, with protection of its NPL Ratio by avoiding an increase of 60 bps and with improvement in its capital ratios by 70 bps.” added Hayat.

Background Information

Burgan Bank

Established in 1977, Burgan Bank is the youngest conventional Bank and second largest by assets in Kuwait, with a significant focus on the corporate and financial institutions sectors, as well as having a growing retail, and private bank customer base. Burgan Bank has majority owned subsidiaries in the MENAT region supported by one of the largest regional branch networks. which include Gulf Bank Algeria - AGB (Algeria), Bank of Baghdad - BOB (Iraq & Lebanon),Tunis International Bank – TIB (Tunisia), and fully owned Burgan Bank – Turkey, (collectively known as the “Burgan Bank Group”). Furthermore, Burgan Bank has a present in the UAE through its corporate office (“Burgan Financial Services Limited) which had helped the bank to participate in multiple financing opportunities in the UAE.