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August 16 2022 12:28 AM ˚
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Capital Bank approves capital increase in favor of the Public Investment Fund

the Board of Directors of Capital Bank Group, Bassem Khalil Al-Salem
The Board of Directors of Capital Bank Group, Bassem Khalil Al-Salem. (Photo: Capital Bank Group)
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AMMAN — In an extraordinary meeting held virtually on Wednesday, Capital Bank's General Assembly approved the Board of Directors' recommendation to raise the bank's capital through issuing new shares in favor of the Public Investment Fund (PIF) as a strategic investor, the bank said in a statement.اضافة اعلان

It said the meeting was presided over by the Chairman of the Board of Directors of Capital Bank Group, Bassem Khalil Al-Salem, in the presence of Group CEO Dawod Al-Ghoul and 86.9 percent of the bank’s shareholders.

Salem described the agreement — which will “see PIF purchasing 23.97 percent of the Group’s capital at an investment value of JD131.2 million — as one of the most significant transactions conducted by the banking sector in the region, and one that reflects positively on Capital Bank's long-term position and financial prospects,” according to the statement.

Salem also stated that 63 million shares will be issued for the benefit of PIF upon completion of the deal, which in turn will raise the Group shareholders’ equity to exceed JD600 million.

Salem also stressed the significance of this strategic investment as a testament to Capital Bank’s solid reputation in the region.

He asserted that, despite the capital increase, Capital Bank is still able to achieve double-digit returns to shareholders through its ambitious expansion and investment plans.

He underscored that this deal “is a manifestation of greater confidence in Capital Bank Group, which has a proven track record of continued, sustainable growth in the Jordanian banking sector”.

The bank, he added, has historically been able to not only weather enormous challenges but to transform them into worthy growth opportunities, even during the most challenging circumstances recently faced by Jordan and the world at large.

During his opening statement, Salem cited some of Capital Bank’s key achievements over the past two years, which included acquiring two of the most prominent foreign banks operating in Jordan and Iraq, Bank Audi and Société Générale de Banque Jordanie.

The Group had also launched its digital bank - Blink, in addition to issuing the first $100 million perpetual AT1 bond in Jordan.


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