Kuwait’s largest lender, the National Bank of Kuwait (NBK), will begin its 10 per cent rights issue on 5 October. The subscription period will run until 21 October.

The issue is set at a price of 500 Kuwaiti fils per share including premium and will raise KD32.7m ($113.4m).

The capital increase, approved at a shareholders meeting in March this year, is intended to support expansion plans to offset rising competition at home.

“Our revenues from outside Kuwait currently comprise 22 per cent and we aim to reach 50 per cent in five years,” said Ibrahim Dabdoub, NBK’s chief executive, at the meeting.

On 22 March 2010, the bank obtained approval from the Central Bank of Kuwait to increase its 40 per cent stake in Kuwait’s Islamic lender Boubyan Bank to as much as 60 per cent. In mid-April, it raised its stake to 46.6 per cent.  

NBK also said on 6 April that it was considering buying a stake in Turkey’s Garanti Bank, citing the country as having one of the most attractive banking sectors. It is also looking to launch operations in Syria through a new lender within one year.

The bank is targeting a 10-15 per cent increase in net profit in 2010.