Amman, September 4, 2007 — IFC,
a member of the World Bank Group, today announced that it will support
Capital Bank, a leading private commercial bank in Jordan, in its expansion
program. IFC’s $30 million investment for a 7 percent equity stake in
the bank will help it provide long-term financing to businesses and affordable
housing for Jordan’s young population.
The financing package includes an additional
$20 million subordinated convertible loan, with a 10-year tenor and a grace
period of over five years. An advisory services package will complement
the investment, helping improve corporate governance, risk management,
and mortgage lending skills. IFC will also assist the bank in building
its operational capacity and internal systems.
“We are extremely proud of this partnership,”
said Haytham Kamhiyah, General Manager of Capital Bank. “IFC is an international
body that works closely on Jordan’s development. This agreement is in
line with our objective to stay at the forefront of markets. It also reiterates
our commitment to world standards, while attesting to our success.”
“A well-developed financial sector
is key to sustainable private sector development. We are pleased to enter
into a long-term partnership with Capital Bank of Jordan as it diversifies
its financial products and helps improve access to finance and to
affordable housing for a larger segment of the population,” said Farida
Khambata, IFC Vice President for Asia and Latin America, who signed the
agreement on IFC’s behalf.
Lack of access to long-term funding
is a barrier to home ownership and a constraint to the growth of Jordan’s
private sector. IFC’s financing will also enable Capital Bank to expand
its network of branches and provide broader coverage across the country.
In 2006, Capital Bank became the first
bank in Jordan to join IFC’s Global Trade Finance Program, which supports
trade with emerging markets worldwide and promotes the flow of goods and
services between developing countries.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
capital in the international financial markets, and providing advisory
services to businesses and governments. IFC’s vision is that poor people
have the opportunity to escape poverty and improve their lives. In FY06,
IFC committed $8.3 billion, including loan participations, to 284 investments
in 66 developing countries. For more information, please visit www.ifc.org.
About Capital Bank
Capital Bank of Jordan, formerly Export & Finance Bank, was established
in 1996 with an authorized capital of 20 million Jordanian dinars ($28.2
million equivalent). This has been increased over the years to 123 million
dinars ($173 million equivalent). The bank provides a full range of commercial
and investment banking services that meet the needs and requirements of
individuals and corporate clients. For more information, please visit www.capitalbank.jo.