Kuwait's largest financial institution, the National Bank of Kuwait (NBK), said Sunday that it plans to increase its capital by 20 per cent before the end of 2007, according to dpa. In a statement received in Manama, NBK chairman Mohammed Abdul Rahman al-Bahar said that the bank's board of directors has decided to propose the increase at the general assembly meeting scheduled for September 23. He said the 20 per cent increase would be raised through a rights issue to be offered for subscription at a premium of 900 fils (3.2 dollars) per new share with a nominal value of 100 fils after obtaining the necessary approvals from the appropriate regulatory authorities. NBK shares are currently trading at 2,160 fils. "The subscription procedures will be issued in advance in order to make the process as easy as possible for our shareholders," al-Bahar said. The capital increase would go to support the bank's strategic expansion plans and the recent acquisition of Al Watany Bank of Egypt and the acquisition of a 40 per cent share in The Turkish Bank. It would also support NBK's continuing efforts to enhance its role in financing economic projects across the region. NBK was founded in 1952 as the first indigenous bank and the first joint stock company in Kuwait and the Gulf region. The bank is the largest financial institution in Kuwait dominating the commercial banking sector where it reported profits of 876 million US dollars in 2006, among the highest in the Arab world.
