Sunday 5 June 2022

#Saudi Wealth Fund to Take $185 Million Jordanian Bank Stake - Bloomberg

Saudi Wealth Fund to Take $185 Million Jordanian Bank Stake - 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 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 a.m. on Sunday.

The PIF, as the $620 billion wealth fund is known, has ambitions to become a global powerhouse. Run by Governor Yasir Al Rumayyan, a close ally of Crown Prince Mohammed bin Salman, its investing domestically to help diversify the Saudi economy and building an international portfolio that can give the country an income beyond crude sales.

It established the Saudi Jordanian Investment Fund with 16 Jordanian banks in 2017. The fund has capital of $3 billion to invest in Jordan.

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