Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), has signed a $185 million subscription agreement with Jordan's Capital Bank Group, to have a 23.97% stake in the group’s capital upon subscription.
The subscription agreement involves PIF buying 63 million newly issued shares to give it a 23.97% stake in the group, according to a statement issued by PIF.
In addition, the deal would increase Capital Bank Group's capital by raising its total shareholders’ equity to around $846 million, and help the lender in expanding its its business by introducing new services and products in Jordan, Saudi Arabia, Iraq, and other markets.
The agreement’s completion is subject to completing the conditions in the relevant agreements and obtaining the required approvals from regulators and the relevant government authorities.
In 2017, the PIF established the Saudi Jordanian Investment Fund with 16 Jordanian banks with a capital of $3 billion to invest in Jordan.
Capital Bank’s shares soared as much as 4.6% and were trading up 2.1% at 2.90 JOD at 11:08AM on Sunday.
