The board of Jordan’s Capital Bank has approved a mandatory offer to acquire the Societe Generale Bank Jordan (SGBJ), its chairman was quoted by official sources as saying on Sunday, December 27.
The acquisition is said to be part of a drive to expand the Central Bank’s foothold regionally and domestically.
Chairman Bassem Al Salem said that an extraordinary general meeting had on Thursday also agreed to issue $100 million in perpetual bonds — meaning they have no maturity — to help drive growth.
The bonds would apparently be the first such debt to be issued by a bank.
Meanwhile, the takeover move is subject to approval by regulatory authorities and the Central Bank of Jordan, said Salem.
SGBJ is said to be a fully licensed Jordanian bank.
The planned acquisition with JD100 million ($140 million) in capital was expected to be finalized in the next few months, Salem was quoted by the official sources as saying.
“This move will help support the future plans of the bank to grow and reflects the strength of its financial situation,” he said.
SGBJ is 87.7 percent owned by Societe Generale de Banque au Liban, according to the latest information on SGBJ’s website.
Jordan Capital Bank earlier this year completed its acquisition of Lebanese Bank Audi’s businesses in Iraq and Jordan.
The move was expected to help the bank diversify and expand its regional operations.
The bank is also pursuing expansion in Iraq via its 62 percent majority shareholding in National Bank of Iraq, said Salem.
The Iraqi bank is said to be a retail lender whose assets have almost doubled within a year to $1.1 billion.
Jordan Capital Bank received approval from the Saudi cabinet to open a branch of the National Bank of Iraq, which is expected to boost trade finance among the three neighboring countries.
Jordan Capital Bank shareholders include the country’s main industrialists and businesses
Its assets have grown 45 percent so far this year to around $6 billion, said Salem.