LONDON, April 14 (IFR) - Kuwait's Burgan Bank is
said to have hired HSBC, KAMCO and NBK Capital for a potential
bond deal, according to bankers.
It is not clear at this stage if the planned deal will be in
U.S. dollars or Kuwaiti dinars, nor whether it will be senior or
subordinated, though the latter seems more likely.
Burgan Bank, rated A3/BBB+, is one of two Kuwaiti lenders
that has been planning to issue subordinated debt, the other
being Gulf Bank.
Kuwait, along with several other Gulf nations, is in
consultations ahead of a move to Basel III.
Burgan Bank wants to raise more capital this year to comply
with the Basel III requirements, while any acquisitions are
unlikely to come soon, the lender's chief executive said last
month, Reuters reported at the time.
The increase, which may happen in the third or fourth
quarter of this year, could be "pure capital" or perpetual bonds
or both, CEO Eduardo Eguren said, depending on discussions with
regulators and shareholders.
"We are discussing this with the central bank - I know that
we may need to increase capital by 20 percent to 30 percent for
sure," he told reporters on the sidelines of the AGM.
The bank has a total capital ratio of 15.4 percent and a
Tier 1 capital ratio of 9.9 percent.
(Reporting by Abhinav Ramnarayan)