Saudi PIF buys 23.97 percent stake in Jordan’s Capital Bank Group

Saudi Arabia is tightening up the business licensing process. It has also mandated banks to report on accounts that carry funds disproportionate to known sources of income. — File photo
Saudi Arabia is tightening up the business licensing process. It has also mandated banks to report on accounts that carry funds disproportionate to known sources of income. — File photo

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, said on Sunday it will buy a 23.97 percent stake in Capital Bank Group, one of the largest banking groups in Jordan, Iraq, and the Middle East and North Africa (MENA) region.

The $600 billion Saudi state fund will pay $185 million for the stake, by buying 63 million new shares of the bank, it said in a statement. The deal aims to increase the banking group’s total shareholder equity to around $846 million, bolstering its ability to execute its strategy and expand its business, the statement said.

The deal is in line with PIF’s strategy to explore new investment opportunities in the MENA region. Jordan is among the mostly regional countries that Saudi Crown Prince Mohammed bin Salman is planning to visit soon, sources told Reuters last month. He is expected to discuss regional and international issues and ink energy and trade agreements.

Abu Dhabi state holding firm ADQ has also allocated $10 billion in investment for projects with Egypt and Jordan.

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