Saudi’s sovereign wealth fund, the Public Investment Fund (PIF), said it will buy a 23.97 percent stake in Jordan’s Capital Bank Group, which operates in Jordan, Iraq, the Middle East, and North Africa (MENA) region.
The acquisition is valued at approximately 695 million Saudi riyals (131.2 million Kuwaiti dinars).
The agreement is part of Saudi’s plan to diversify its economy away from oil by making sustainable investments in the region and around the world.
The deal aims to increase the group’s capital, thereby raising its total shareholders’ equity to around 3.2 billion Saudi riyals (600 million Kuwaiti dinars). This will bolster the group’s ability to execute its strategy.
Moreover, the investment will contribute to the Capital Bank Group’s initiative of positively impacting the Jordanian economy, and highlighting the growth prospects that the bank offers especially since it enjoys a strong financial and credit position.
According to the group’s website, Capital Bank Group has assets of approximately $ 8.5 billion and in 2021 acquired the Lebanese bank Audi stores and branches in Jordan and Iraq.
