Jordanian lender Capital Bank is reportedly set to acquire Societe Generale Bank Jordan (SGBJ) to further its regional and local expansion plans.

According to a Reuters’ report, the board of Capital Bank has given the go-ahead to the mandatory offer for the purchase of SGBJ, which is a fully licensed Jordanian bank with $140m in capital.

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It expects to seal the deal in the next few months, Capital Bank chairman Bassem Al Salem told the news agency.

“This move will help support the future plans of the bank to grow and reflects the strength of its financial situation,” Al Salem stated.

As per SGBJ’s website, it is 87.7% owned by Societe Generale de Banque au Liban.

Additionally, in the extraordinary general meeting held last week, the board approved the issue of $100m in perpetual bonds or bonds with no maturity date.

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Al Salem noted that the bonds are the first such debts instruments to be issued by a Jordanian lender.

Both the bonds and SGBJ’s acquisition await regulatory approval.

Last year, Capital Bank brokered a deal to buy Lebanese lender Bank Audi’s branch network in Jordan and Iraq.

The acquisition was completed earlier this year, taking the total number of branches operated by Capital Bank and its subsidiary National Bank of Iraq (NBI) to 28 in Jordan and 18 in Iraq, respectively.

Capital Bank owns a 62% majority stake in NBI, whose assets have grown nearly two-fold within a year and now stand at $1.1bn, Al Salem claimed.

Al Salem added that the lender has received the Saudi cabinet’s nod to open a NBI branch in the country for supporting trade finance in the region.