Public Investment Fund of Saudi Arabia and Capital Bank Execute 131.2M JOD Subscription Agreement

AMMAN, JORDAN:  K&P’s Khaldoun Nazer, Dana Mubaidien and Moawyeh Tarawneh are working with Allen & Overy to advise the Public Investment Fund (“PIF”) of Saudi Arabia on a subscription agreement with Capital Bank (the “Bank”), one of the largest banks operating in Jordan, Iraq, and the region.  K&P has provided advice in respect of Jordanian law on all regulatory matters, conducted a comprehensive legal due diligence exercise, and is assisting with securing all approvals needed to complete this transaction.

This week, PIF and the Bank announced the signing of the subscription agreement, which is worth approximately 695 million Saudi riyals (131.2 million JD).  The deal aims to increase the capital of the Bank, raising the total equity to more than 3.2 billion Saudi riyals (600 million JD). Upon completion of the transaction, the Fund will become a strategic investor in the Bank with a share of approximately 24% of the Bank’s capital.

This deal further promotes K&P’s commitment to fostering regional cooperation and investment, strengthening ties, and supporting the growth of the Jordanian economy through sustainable, long-term strategic economic partnerships.