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Mon 7 Jun 2010 01:51 PM

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Burgan bank readies $477.5m bonds issue

Kuwaiti lender may sell some of the issue to foreign investors - chairman.

Burgan bank readies $477.5m bonds issue
BOND ISSUE: Priority for the bond will go to local investors, Burgan Banks chairman said.

Kuwait's Burgan Bank will issue bonds worth up to 140 million dinars ($477.5 million), and may sell some the issue to foreign investors, its chairman said on Monday.

Majed Eisa al-Ajeel, the lender's chairman, told reporters that priority would go to local investors.

"It will be open to everybody ... but of course priority will be for the local market," Ajeel said.

Burgan is the commercial banking arm of investment firm Kuwait Projects Co (KIPCO).

Ajeel said the bonds could be issued in a month, and could be in a combination of dinar and foreign currencies.

He said the bank needs the funds for expansion and to boost capital adequacy.

Burgan is pushing to move outside of its home market to offset rising competition at home where foreign players have entered the fray. It has stakes in the Bank of Baghdad, Algeria Gulf Bank, Jordan Kuwait Bank and Tunis International Bank. (Reuters)

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