The Kuwait Projects Company (Kipco) has purchased a 51 per cent stake in Jordan Kuwait Bank (JKB) from Burgan Bank, the bank announced earlier today.

 

The purchase is part of a series of transactions by Burgan Bank to meet capital ratios required under Basel III, said a statement from Burgan. 

 

The statement added that Burgan Bank's balance sheet will now be more flexible and will better support its growth plans. The bank will continue to coordinate and cooperate closely with JKB and other banks in the Kipco Group in delivering the existing regional commercial banking strategy and capturing the scale benefits from the entire Group.

 

Speaking on the transactions, Kipco vice chairman Faisal Al Ayyar, said the transaction reflects Kipco’s ability to support its banking operations to comply with Basel III. “This transaction is a testament to the support that KIPCO provides to its core operations. The purchase of JKB raises Burgan Bank’s capital adequacy above that required under Basel III. This will allow Burgan Bank to continue to execute its strategy and long-term plan for building shareholder value,” he added. -TradeArabia News Service