Kuwait’s Burgan Bank Issues $500 Million in Five-Year Bonds
Kuwait’s Burgan Bank has announced the pricing of $500 million in senior unsecured bonds with a five-year term, as stated in a filing on Boursa Kuwait on Sunday. These bonds will mature in 2030 and are part of the bank’s plan to strengthen its financial base and liquidity.
New Bond Issuance
According to the bank, the settlement of the bond issue is expected to be completed on October 16. Burgan Bank said that this new issuance will not have an immediate impact on its financial position. However, once completed, it will help improve the bank’s long-term liquidity portfolio and regulatory liquidity ratios. In simple terms, the funds raised from these bonds will help the bank maintain a stronger financial cushion and meet future liquidity requirements more comfortably.
Financial Performance
Burgan Bank’s financial performance in 2025 has seen a slight decline. In the second quarter of 2025, the bank recorded a net profit of $33 million (KWD 10.13 million), which is 9% lower than the $36.3 million (KWD 11.11 million) earned during the same period in 2024.
For the first half of 2025, the bank’s profit stood at $67.5 million (KWD 20.82 million), compared to $68.9 million (KWD 21.24 million) in the first half of 2024, marking a 2% decrease. The bank explained that this drop in earnings was mainly due to higher operating costs and increased provisions for possible credit losses. These provisions are funds set aside to cover potential unpaid loans or defaults, which are part of normal banking risk management.
Despite the slight decline in profit, Burgan Bank continues to show a stable financial position, with a focus on strengthening its capital structure and liquidity. The bank’s decision to issue new bonds reflects its strategy to ensure steady funding and support future growth.
Company Background
Burgan Bank was established in 1975 and has grown to become one of Kuwait’s leading commercial banks. It was listed on the Kuwait Stock Exchange in 1984 and currently has an authorized capital of $1.2 billion (KWD 400 million). The bank provides a wide range of banking and financial services, including corporate and retail banking, investment services, and international banking.
The majority shareholder in Burgan Bank is Kuwait Projects Company (Holding), also known as KIPCO, which holds a controlling stake in the institution. KIPCO is one of the largest holding companies in the Middle East and North Africa, with investments across several sectors such as banking, media, real estate, and insurance.
Over the years, Burgan Bank has expanded its regional presence through subsidiaries and affiliates in various countries, building a strong reputation for stability and customer service. The recent $500 million bond issue is another step toward reinforcing its financial strength and maintaining investor confidence.
By focusing on liquidity and capital management, Burgan Bank aims to remain resilient amid changing economic conditions and continue supporting Kuwait’s banking sector growth.
Published: 13th October 2025
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