Saudi Arabia’s sovereign wealth Fund, the Public Investment Fund, and Capital Bank Group, one of the largest banks operating in Jordan, Iraq and the region, have signed a subscription agreement worth SAR 695 million ($185 million).
According to the agreement, PIF becomes a strategic investor in the group, where about 63 million shares will be issued for the benefit of the fund upon completion of the deal, at a rate of 23.97 percent of the group’s capital, with a value of about 695 million riyals (131.2 million Jordanian dinars).
Saudi media reports said the deal aims to increase the capital of the Capital Bank Group, and thus raise the total shareholders’ equity to more than 3.2 billion riyals (600 million Jordanian dinars), which contributes to enhancing the group’s ability to implement its strategy, as it seeks to expand its business and introduce new services and products in Jordan, Iraq and the kingdom and other markets in which it operates, including the business of the investment arm of the group – Capital Investments Company.
It also aims at strengthening its plans for digital transformation by providing the latest electronic services that include the launch of digital banks.
The reports said the deal is in line with the strategy of the Public Investment Fund, in the search for new investment opportunities in the Middle East and North Africa, which support building long-term strategic economic partnerships to achieve sustainable returns, which contributes to maximizing the fund’s assets and diversifying the Kingdom’s sources of income, in line with the vision of 2030.
The investment will contribute to the efforts of the Capital Bank Group to support the Jordanian economy, and to highlight the importance of growth opportunities in the group, as it enjoys today a strong financial and credit position, especially after its acquisition in less than a year of the assets and branches of Bank Audi in Jordan and Iraq, and Societe Generale Bank of Jordan.