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Bloomberg
Saudi Arabia’s sovereign wealth fund will take a $185 million stake in Capital Bank of Jordan as part of deal to help the lender expand.
The Public Investment Fund (PIF) signed a subscription agreement that would involve it buying 63 million newly issued shares to give it a 23.97% stake in the Jordanian bank, according to a statement. The deal would raise Capital Bank’s shareholders’ equity to about $846 million, helping to fund an expansion strategy in Jordan, Saudi Arabia and Iraq, and to grow its investment arm.
Capital Bank’s shares jumped as much as 4.6% and were trading up 2.1% at 2.90 dinars at 11:08 am on Sunday.
The PIF, as the $620 billion wealth fund is known, has ambitions to become a global powerhouse. It established the Saudi Jordanian Investment Fund with 16 Jordanian banks in 2017. The fund has capital of $3 billion to invest in Jordan.