Commercial Bank Of Kuwait to convert to Islamic banking

Lender also received approval to raise $426m through the sale of subordinated bonds to fund expansion
Commercial Bank Of Kuwait to convert to Islamic banking
By Reuters
Thu 03 Apr 2014 04:45 PM

Commercial Bank of Kuwait, the Gulf state's fifth largest lender by assets, said a majority of shareholders had approved a plan to convert the bank into a full-fledged Islamic lender, state news agency KUNA reported.

The bank's chairman Ali Mousa Al Mousa was quoted as saying on Wednesday that 85 percent of shareholders had approved the move, adding that the measure would still require further approvals.

"The decision does not take immediate effect - it is just a first step in a legal process involving several studies and approvals."

The bank also said it had received approval to raise KWD120m ($426m) through the sale of subordinated bonds to help in its expansion plans.

The bank's assets rose 7.1 percent last year, reaching KWD3.9bn for the 2013 financial year.

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