KIPCO – the Kuwait Projects Company – has announced the purchase by the Group of a 51 per cent stake in Jordan Kuwait Bank (JKB) from Burgan Bank.
The purchase is part of a series of transactions by Burgan Bank to meet capital ratios required under Basel III.
Following these transactions, Burgan Bank’s balance sheet will be more flexible and will better support its growth plans.
Burgan Bank Group 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.
KIPCO’s Vice Chairman (Executive), Mr 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: “JKB is a well-established bank that is deeply rooted in the Jordanian banking sector. With a history of nearly 40 years of success, it is important for to us for the bank to remain within the KIPCO Group. Burgan Bank will continue to work closely with JKB through the Group’s network. KIPCO will continue to support all entities within its commercial banking sector and encourage them to benefit from the regional banking network and share group expertise.”
JKB was founded in 1976 and is a major player in the Hashemite Kingdom’s banking sector. JKB has been a cornerstone of KIPCO’s banking activities since 1997.