The Banking Executive Magazine - January 2025

Burgan Bank Burgan Bank LAUNCHES FIRST CERTIFICATES OF DEPOSIT PROGRAM IN KUWAIT Burgan Bank announced the estab- lishment of a strategic USD 500 mil- lion Certificates of Deposit (CDs) program in Kuwait, rated 'F1' by Fitch Ratings which is equivalent of “A”. This short-term debt instrument, spearheaded by the Bank’s Treasury team, serves as a strategic mecha- nism for the bank to maintain a di- versified source of liquidity, optimize the balance sheet and allow for suf- ficient access to funding. The program has been established in coordination with Mizuho, as the Lead Arranger, whereas MUFG Bank, the Industrial and Commercial Bank of China (ICBC), the Korea Develop- ment Bank (KDB), the Development Bank of Singapore (DBS), and Stan- dard Chartered Bank (SCB) act as a Dealers. CDs are short term debt instruments with maturities up to one year. They are primarily popular with Asian in- vestors and can be priced at fixed, floating or zero coupon (at a dis- count). Mr. Tony Daher, Group Chief Execu- tive Officer at Burgan Bank, com- mented “We are proud to introduce our new CD program and are pleased with the positive reception it has received. This program rein- forces our commitment to achieving the strategy aimed at growth in both the local and regional markets. This program demonstrates our commit- ment to growth and strengthens our leading position in the domestic and regional markets.” Mr. Daher added: “In addition to strengthening our relationships in the global financial and investment mar- kets, the inclusion of CD program to Burgan Bank’s portfolio enables the bank to attract new segments of in- vestors in the global market and en- hances the bank’s risk profile and resilience against market fluctua- tions.” Mr. Abdullah Marafie, General Man- ager of Treasury and Financial Insti- tutions at Burgan Bank, added: “The launch of CD program aligns with the group’s policies that aim to diver- sifying the sources of funding, which enhances liquidity stability and pro- tects the bank from any financial shocks. This program will contribute to the bank’s adherence to Basel III ratios including Liquidity Coverage Ratio (LCR), Loan to Deposit Ratio (LDR), and Net Stable Funding Ratio (NSFR).” Mr. Marafie added: "The program has been carefully designed to expand Burgan Bank's presence in the re- gion, particularly in Asian markets where short-term debt instruments are in high demand. Building rela- tionships with foreign investors also helps to open broader horizons for securing long-term financing. In line with our commitment to meeting market needs, this program was de- veloped based on comprehensive studies and research to ensure that our products align with our position as a trusted financial partner." the BANKING EXECUTIVE 36 ISSUE 193 JANUARY 2025