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June 6, 2022

Saudi investment fund signs deal to buy 23.97% stake in Capital Bank

Saudi Arabia’s Public Investment Fund (PIF) has signed a $185m subscription agreement with Amman, Jordan-based Capital Bank Group. 

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The agreement will see PIF become a strategic investor in the Jordanian banking group.

Upon the successful execution of the transaction, PIF will own a 23.97% stake in the Capital Bank, which will issue 63 million in new shares.

Capital Bank aims to increase its capital through the deal, thus raising its total shareholders’ equity to around $846m. 

The proceeds will also support the banking group’s ability to execute its strategy and expand its businesses. 

The expansion plan includes launching new products and services in Jordan, Iraq, Saudi Arabia and other markets where it operates. 

Additionally, the group’s investment arm, Capital Investment, will be used to support its expansion.

Furthermore, Capital Bank will use PIF’s investment to further its digital transformation plans, including launching digital banks.

PIF said: “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.”

With $8.4bn (JOD6bn) in assets, Capital Bank is one of the key players operating in Jordan and regional markets. 

The investment fund noted that the banking group has a ‘strong’ financial and credit position, following the acquisition of Bank Audi’s local and Iraqi assets and the Société Generale – Jordan.

Free Report
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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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