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Wed 10 Feb 2010 07:11 PM

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Kuwait's Boubyan share issue over 85% covered

Bank planned to raise capital by 50%, at 250 fils per share, to $609.9m.

Kuwait's Boubyan share issue over 85% covered
SHARE ISSUE: Boubyab Bank has received subscriptions of more than 85% to a share issue. (Getty Images)

Kuwaiti Islamic lender Boubyan Bank said it received subscriptions of more than 85 percent to a share issue, which it may reopen.

The capital increase was "over 85 percent covered" and the board of directors would recommend to reopen the rights issue for existing shareholders, a bank statement said.

The statement did not give the value of the funds the bank raised which it has said would be used for an expansion in the local market.

Boubyan said last year it planned to raise its capital by 50 percent at 250 fils per share. Reuters calculated then that the share issue would increase the lender's capital to about $606.9 million.

The lender's major shareholders National Bank of Kuwait(NBK) and Commercial Bank of Kuwait, were among the subscribers in the rights issue, which closed on Sunday.

Last year, NBK, the country's biggest lender by market value, raised its stake in Boubyan to 40 percent, to boost its sharia-compliant business.

Boubyan Bank, which complies with Islam's ban on interest, competes with larger rival Kuwait Finance House and Kuwait International Bank.

Shares of Boubyan closed down 1.1 percent on Wednesday. (Reuters)

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