NBK raises Boubyan Bank stake by 13.2%

National Bank of Kuwait has raised its sake in Islamic lender Boubyan Bank by 13.2 per cent.

NBK, the country's biggest lender by market value, bought 154 million shares at 550 fils per share for a total of KD84.7 million (Dh1 billion), the bourse said in a statement.

Securities Group bought the remaining 77 million shares, or 6.6 per cent stake, at 560 fils per share for KD43.12m, the bourse added. There are 1,000 fils in a dinar.

Kuwait Investment Authority (KIA), the Opec member's sovereign wealth fund, was selling its 19.823 per cent stake in Boubyan, or 231 million shares, in the auction.

NBK's total stake in Boubyan Bank stands at 27.5 per cent.

Nasser Al Sayer, NBK's Vice-Chairman, said this was an important strategic move for NBK, providing the bank with a gateway into the Islamic banking market. "Our main goal is to stabilise Boubyan Bank, enhance its position in the local market and develop its services."

He also stressed that the management and operations of NBK and Boubyan Bank would be kept separate and fully independent of each other in accordance with Islamic Banking law and regulation. (With inputs from Reuters)

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