June 22, 2024

PIF takes 24% stake in Capital Bank Group with an approximately USD185Mln subscription deal

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The Public Investment Fund (“PIF” or the “Fund”) and Capital Bank Group (the “Group”), one of the largest banking groups in Jordan, Iraq, and the MENA region announced today the signing of a subscription agreement, through which PIF becomes a strategic investor in the Group.

Upon the successful completion of the deal, PIF will have a 23.97% interest in the Group’s capital, at a value of approximately USD185 million, and represented by the issuance of 63 million in new shares.

The deal completion is subjected to finishing the conditions in the relevant agreements and obtaining the required approvals from regulators and the relevant government authorities.

According to both firms, this deal focuses on surging the Group’s capital thereby raising its total shareholders’ equity to around USD846 million, and bolstering the Group’s ability to execute its strategy, and expand its business by introducing new services and products in Jordan, Saudi Arabia, Iraq, and other markets where it operates, including through the Group’s investment arm; Capital Investments. In addition, the deal will strengthen the Group’s digital transformation plans by offering the most up-to-date electronic services, including the launch of digital banks.

Industry sources added that this deal is in line with PIF’s strategy, which includes exploring new investment opportunities in the MENA region that support the creation of long-term strategic economic partnerships to achieve sustainable returns that contribute to maximizing the Fund’s assets and diversifying Saudi Arabia’s economy in line with Vision 2030.

The investment contributes to the Capital Bank Group’s initiative of positively impacting the Jordanian economy, and highlights the growth prospects that the Bank offers, especially given the Group’s solid position in terms of equity. The Group enjoys a strong financial and credit position following its acquisition of the assets and branches of Bank Audi in Jordan and Iraq, as well as Société Generale – Jordan in less than a year.

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