NBK plans 20% Capital Increase before end of year

National Bank of Kuwait (NBK) announced today that it plans to increase its capital by 20% before the end of 2007. NBK’s Chairman Mr. Mohammed Abdul Rahman Al-Bahar stated that NBK's Board of Directors has decided to propose at the General Assembly Meeting, scheduled on 23 September 2007, the approval of a 20% increase in the Bank's capital through a rights issue to be offered for subscription at a premium of 900 fils per new share issued, over and above the par value of 100 fils per share, after obtaining the necessary approvals from the appropriate regulatory authorities. "The subscription procedures will be issued in advance in order to make the process as easy as possible for our shareholders," Al-Bahar added.

The decision of NBK's Board of Directors is intended to support the Bank’s strategic expansion plans and the recent acquisition of Al Watany Bank of Egypt and the acquisition of a 40% share in The Turkish Bank. The capital increase will also support NBK's continuing endeavors to enhance its role in financing economic projects across the region, whilst achieving high levels of returns and profits for its shareholders and providing its customers with the best quality products and services.