Kuwait’s Burgan Bank has paid $10.7m to increase its stake in Iraq’s Bank of Baghdad to 50.6 per cent, making it a majority shareholder.

The purchase of an additional 5.3 per cent of the Iraqi bank took place on 10 January, according to a statement issued by Burgan. The acquisition is part of the bank’s strategy to increase its presence outside its home market of Kuwait.

Burgan, which is majority owned by Kuwait Projects Company (Kipco), first acquired a stake in Bank of Baghdad in 2008 when it bought the foreign assets of Bahrain’s United Gulf Bank for $725m. This also included stakes in Algeria Gulf Bank, Jordan Kuwait Bank, and Tunis International Bank.

The most recent deal means that Burgan now holds the majority stake in all the banks it has invested in.

Burgan currently holds 51.1 per cent in Jordan Kuwait Bank, 77 per cent in Tunis International Bank and 60 per cent in Algeria Gulf Bank.