Burgan Bank has reached an agreement to sell a 52% stake in its subsidiary, Burgan Bank Turkey, located in Turkey. The buyer is Rawabi United Holding Company, a wholly-owned subsidiary of Kuwait Projects Company (KIPCO). 

In a disclosure published on Boursa Kuwait's website on Sunday 12 Nov 2023, Burgan Bank stated that it intends to maintain operational control over Burgan Bank Turkey and include its financial statements in its own financial results. 

The bank expects this transaction to positively impact its capital ratios and minimize the effects of fluctuations in the exchange rate of the Turkish lira on its financial statements. It assures stakeholders that the transaction is unlikely to impact its operating activities or customer relations. 

Burgan Bank has already secured the necessary regulatory approvals from both the Central Bank of Kuwait and the Banking Regulation and Supervision Authority in Turkey. The bank anticipates completing the implementation of the agreement in the coming weeks. 

Burgan Bank, established in 1975, is listed on Boursa Kuwait since 1984. It has an authorized capital of KD 400 million (approximately USD 1.2 billion) and actively engages in all banking activities.