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Ammon News - The Capital Bank's General Assembly Wednesday approved the Board of Directors' recommendation to raise the bank's capital by issuing new shares in favour of the Public Investment Fund (PIF) as a strategic investor in Capital Bank.

During an extraordinary virtual meeting, the Capital Bank Group Board of Directors, Bassem Salem, who chaired the meeting, described the agreement 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."

Under the agreement, the PIF would be purchasing 23.97% of the Group’s capital at an investment value of JOD 131.2 million. Salem added that 63 million shares would be issued for the benefit of PIF once the deal is sealed, which in turn would raise the Group shareholders’ equity to exceed JD600 million. Salem noted the significance of the strategic investment as a testament to Capital Bank’s solid reputation in the region.

He further stated that, despite the capital increase, Capital Bank is still able to achieve double-digit returns to shareholders through its expansion and investment plans. He added that the 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 said, has been able to not only weather enormous challenges but to transform them into worthy growth opportunities, even during the most challenging circumstances.