Capital Bank Group, a leading bank in Jordan, Iraq and the region, has announced the successful completion of all procedures for the underwriting of the Saudi Public Investment Fund’s (PIF) 63 million shares, equivalent to 23.97% of the Group’s capital valued at JOD 131.2 million. The deal was completed upon the fulfillment of all the conditions precedent to the subscription agreement and receiving the necessary approvals from regulatory agencies, making PIF a strategic investor in the group.

The Chairman of Capital Bank Group Bassem Khalil Al-Salem stated that PIF’s entry as a strategic investor in Capital Bank Group is considered a significant move that highlights the group’s stellar reputation as a leader in the banking sector in the region.

According to Al-Salem, PIF’s investment will allow the Group to continue executing on its ambitious expansion strategy and advance the products and services it currently offers. It will also strengthen the Group’s digital transformation plans which revolve around introducing cutting-edge e-services and digital solutions.

Al-Salem went on to add that the Group plans to accelerate its operations in Iraq and strengthen its presence in the Kingdom of Saudi Arabia through its subsidiary, the National Bank of Iraq. Furthermore, this partnership is expected to forge new business opportunities and expand the services offered by the Group’s entities that are present in the region’s largest economies, particularly those services and products offered by the Group’s investment arm - Capital Investments which is located in Jordan, Iraq, and the United Arab Emirates.

Capital Bank Group’s Chief Executive Officer Dawod Al Ghoul affirmed that PIF’s investment will see the Group’s total shareholders’ equity close to JOD 600 million, while total assets are expected to reach approximately JOD 6.5 billion. He added that the deal will give the Group the required momentum to expand into new markets, increase business bandwidth and provide it with access to a network of some of the best regional and global correspondent banks as well as access to low-cost funding, which will reflect positively on the Group’s profitability and its ability to increasingly payout dividends to its shareholders.