Burgan Bank has received approvals from Central Bank of Iraq to sell its ownership stake of 51.8% in Bank of Baghdad to Jordan Kuwait Bank. Burgan has therefore completed all the necessary regulatory approvals to execute and conclude the sale.
Burgan has agreed the transaction terms with the buyer and is now expected to complete all required legal documentations and Iraqi Stock Exchange requirements over the next few weeks.
Mr. Masoud M.J. Hayat, Vice Chairman and Group CEO of Burgan Bank commented saying “The decision of selling our stake in Bank of Baghdad was taken to ensure the best outcome for the Bank and for our shareholders. This sale is in line with Burgan Bank’s pursuance of strategic asset reallocation, which is one of our key strategic priorities and it will enable us to focus on Burgan’s core market, Kuwait.”
‘This transaction shall improve Burgan’s financial metrics, with protection of its NPL Ratio by avoiding an increase of 60 bps and with improvement in its capital ratios by 70 bps.” added Hayat.
Mr. Masoud M.J. Hayat, Vice Chairman and Group CEO of Burgan BankRelated Business Chains: