Burgan Bank of Kuwait is selling its controlling stake in Jordan Kuwait Bank to another subsidiary of parent firm Kuwait Projects Company. The deal, involving Jordan’s fourth-largest bank by assets, is part of a series of steps being taken to boost Burgan’s capital in preparation for the introduction of the Basel III global finance rules. The transaction will reduce Burgan’s risk-weighted assets by more than 500 million dinars ($1.65 billion) and enhance the total capital adequacy ratio (CAR) to over 15 percent at the end of 2015. Burgan’s CAR stood at 12.7% at the end of September. However, which subsidiary of Kuwait Projects Co would acquire the 51.19% stake. The company is Kuwait’s largest investment firm and has interests in banking as well as media, industrials and real estate. Burgan has already undertaken a number of capital-boosting measures in recent months.
