The Public Investment Fund (“PIF” or the “Fund”) and Capital Bank Group (the “Group”), one of the largest banking groups in Jordan, Iraq and the MENA region, announced today the signing of a subscription agreement, through which PIF becomes a strategic investor in the Group. Upon the successful completion of the deal, PIF will have a 23.97% interest in the Group’s capital, at a value of approximately USD185 million, and represented by the issuance of 63 million in new shares. 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 USD846 million, and bolstering 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 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.

ENDS

About PIF

The Public Investment Fund (“PIF”) is one of the largest and most impactful sovereign wealth funds in the world. Since 2015, when the Board was reconstituted and oversight transferred to the Council of Economic and Development Affairs, the Fund’s board of directors has been chaired by HRH Prince Mohammed bin Salman Al Saud, Crown Prince, Deputy Prime Minister and Chairman of the Council for Economic and Development Affairs. As of April 2022, PIF’s Assets Under Management have reached more than $620 billion (over 2.3 trillion Saudi Riyals). The Fund plays a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the global economy. Since 2017, the Fund has established 52 companies and created, directly and indirectly, more than 500,000 jobs as at the end of 2021.

PIF is building a diversified portfolio by entering into attractive and long-term investment opportunities in 13 strategic sectors in Saudi Arabia and globally. The Fund's strategy, as set out in the PIF Program 2021-2025 - one of the Vision 2030 realization programs - aims to enable many promising sectors and contribute to increasing local content by creating partnerships with the private sector, in addition to injecting at least 150 billion riyals annually into the local economy. PIF works to transfer technologies and localize knowledge to build a prosperous and sustainable economy in Saudi Arabia. As the investment arm of Saudi Arabia, the Fund looks to make unique investments, and is building strategic alliances and partnerships with prestigious international institutions and organizations, which contribute to achieving real long-term value for the Kingdom in line with the objectives of Vision 2030. PIF has also created an operational governance model that reflects its main tasks and objectives, in line with best international practices. Applying this model of governance enhances the level of transparency and effectiveness in decision-making and future progress.

More information about PIF can be found at: www.pif.gov.sa  

About Capital Bank Group

Capital Bank Group is considered one of the top financial institutions operating in the Jordanian and regional markets, with assets of JOD 6 billion (USD 8.4 billion), while the total equity of its shareholders is approximately JOD 472 million (USD 665 million)

Capital Bank Group includes Capital Bank, which since its inception in 1995, has grown to become one of the top financial institutions in Jordan, offering the Jordanian market a comprehensive set of commercial and investment banking services and solutions tailored to the needs of retail and corporate clients alike.

In 2005, Capital Bank (Jordan) purchased majority shares of the National Bank of Iraq (61.85%), which enabled NBI to develop its products and services, strengthen its foothold and enhance financial inclusion at the country level, support export activities and provide all services to Jordanian companies operating In Iraq. As for Capital Investments, it is a wholly owned subsidiary of Capital Bank established in 2006 and offers specialized investment banking services to its clients through its offices in Jordan and the United Arab Emirates / Dubai International Financial Center (DIFC).

Further building on its ambitious expansion strategy, Capital Bank Group also acquired Bank Audi’s operations in both Jordan and Iraq in 2021 and followed that milestone in 2022 with the acquisition of the branches and operations of Société Générale Bank in Jordan, strengthening its competitive position in the Jordanian banking market. In early 2022, Capital Bank launched its digital bank - Blink, to re-imagine the way people conduct their banking operations, targeting young individuals.