The Capital Bank of Jordan is reportedly planning to acquire Societe Generale Bank Jordan (SGBJ) to expand its regional and domestic footprint.
The board of directors of Capital Bank has approved a mandatory offer to takeover SGBJ, reported Reuters.
Also, the company has agreed to issue perpetual bonds worth around $100m, in a recently held extraordinary general meeting.
The bonds represent the first such debt to be issued by a Jordanian bank, said Central Bank board chairman Bassem Al Salem.
The transaction is expected to close in a few months, subject to approval by regulatory authorities and the Central Bank of Jordan.
Salem said: “This move will help support the future plans of the bank to grow and reflects the strength of its financial situation.”
SGBJ is a fully licenced Jordanian bank with around $140m in the capital, with Societe Generale de Banque au Liban owning a majority stake of 87.7%.
Earlier this year, the Capital Bank of Jordan has closed the acquisition of Lebanese Bank Audi’s assets in Iraq and Jordan to diversify and expand its regional operations.
The bank is planning to expand its retail banking business in Iraq through its 62% majority stake in the National Bank of Iraq.
Also, it has secured the Saudi cabinet approval to open a branch of the National Bank of Iraq in the country, which is expected to boost the trade finance.
According to Reuters’ report, the Capital Bank of Jordan has recently expanded to serve small and medium-sized companies and retail customers, where its assets increased by 45%, to around $6bn this year.
