Gulf state's fourth-largest bank by assets says the issue would be used to reinforce the base capital
Kuwait's Gulf Bank on Wednesday said it has received approval from the country's Capital Markets Authority to issue a capital-boosting bond worth up to 100 million dinars ($332.5 million) to run for no more than 10 years duration.
The Gulf state's fourth-largest bank by assets said in a bourse statement that the issue would be used to reinforce the base capital in line with Basel III requirements.
It added the lender had already received approval from Kuwait's central bank in February and from the general assembly on Mar. 9.
Gulf Bank had said last month it would ask shareholders at the March meeting to approve a number of measures it was considering to help boost its capital reserves.
The bank's total capital adequacy ratio, a key indicator of its financial health, stood at 15.56 percent as of Dec. 31, compared with a minimum requirement in Kuwait of 13 percent.