Gulf Bank capital increase 6.9 times oversubscribed

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Jassim Mustafa Boodai, Gulf Bank Chairman

KUWAIT CITY, Nov 19: Gulf Bank is well-equipped to invest in its future strategic growth and will continue providing exceptional products and services to its customers. Gulf Bank announced the completion of the subscription period of the Bank’s capital increase through rights issue successfully, with a 686.3% subscription coverage, totaling KD 411.8 million in comparison to the issuance size of KD 60 million. The subscription process was led jointly by KAMCO Invest and Gulf Bank, as the lead managers and subscription agents. The subscription was open for eligible shareholders and rights holders from October 29 to November 12, 2023. Gulf Bank’s capital increase of issued and paid-up capital was KD 26.1 million through a rights issue of 260,869,565 new shares at 230 fils per share including a nominal value of 100 fils, in addition to a share premium of 130 fils per share. Accordingly, Gulf Bank’s issued and paid-up capital increased by 7.76%, reaching KD 362.1 million.

Mr. Jassim Mustafa Boodai, Gulf Bank’s Chairman, stated, “The significant over-subscription reflects shareholders’ confidence in Gulf Bank and its future plans.” The increase aims to strengthen the Bank’s capital base, enhance regulatory capital ratios, and enable the pursuit of future growth opportunities aligned with the Bank’s strategy. Boodai emphasized on the Bank’s commitment to sustainable growth and added value for all stakeholders, and continue providing exceptional products and service that meets customer aspirations. Mr. Jassim Mustafa Boodai expressed his appreciation to the lead managers of Kamco Invest Gulf Bank, and Kuwait Clearing Company for their outstanding efforts.

He also thanked the regulatory authorities, including the Central Bank of Kuwait, the Capital Markets Authority, Boursa Kuwait, and the Ministry of Commerce and Industry, for their cooperation in providing necessary approvals. As of September 30, 2023, Gulf Bank’s capital adequacy ratio reached 15.8% and tier 1 capital ratio 13.6%, both above regulatory requirements. The Bank is an “A” rated bank by three international credit rating agencies. In the first nine months ending September 30, 2023, Gulf Bank reported a net profit of KD 53.8 million, an 18% increase compared to the same period in 2022. Operating income grew by 6% to KD 140.1 million, with return on assets improving from 0.9% to 1.0% and return on equity increasing from 9.0% to 10.0%.

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