PIF signs agreement to acquire 24% of Jordanian bank for SAR 695 mln

Logos of PIF and Capital Bank Group

The Public Investment Fund (PIF) and Capital Bank Group, one of the largest banking groups in Jordan, Iraq and the MENA region, announced today, June 5, signing a subscription agreement, through which PIF becomes a strategic investor in the Group.

A total of 63 million new shares will be issued in favor of the PIF upon the successful completion of the deal, the fund said in a statement received by Argaam.

The Saudi sovereign fund will have a 23.97% interest in the Group’s capital, at a value of approximately SAR 695 million.

The completion of the deal is subject to completing the conditions in the relevant agreements and obtaining the required approvals from regulators and the relevant government authorities.

The deal aims to increase the group’s capital, thereby raising its total shareholders’ equity to around SAR 3.2 billion. This will bolster the group's ability to execute its strategy, and expand its business through 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.

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, the PIF concluded.

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