The First Bond Listing for a Jordanian Bank on the International Trading Platform
March 3, 2022 – Dubai, the United Arab Emirates: Capital Bank of Jordan rang the bell for the opening of Nasdaq Dubai’s market, which comes after the successful listing of a $100 million perpetual AT1 bond. The bond is the first issuance of its kind for a Jordanian bank on the region’s international financial exchange. Dubai was chosen for the listing in view of its role as the largest listing venue in the Middle East for US dollar-denominated debt listings.
To commemorate the listing, the bank’s Head of Private Banking and Wealth Management Rima Shaban rang the Nasdaq Dubai market opening bell today in the presence of Capital Bank Group’s CEO as well as executive management team members.
“We are proud of our successful listing at Nasdaq Dubai, which we consider a unique global trading platform operating within a high-quality and well-regulated environment,” commented Capital Bank Group Chairman, Bassem Khalil Al-Salem. “This will further extend Capital Bank’s reach and allow our teams to further strengthen the bank’s relationship with investors in the United Arab Emirates as well as the entire Gulf Region.”
Al-Salem further expressed his gratitude to the investors who placed their trust in the listing, demonstrating their strong confidence in Capital Bank’s ambitious strategy and its ability to achieve and sustain consistent growth.
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “Nasdaq Dubai attracted its highest ever number and value of new bond listings in 2021. We are delighted to see leading regional and global institutions, including Capital Bank, leveraging Nasdaq Dubai’s world-class ecosystem to achieve their fund-raising plans and strengthen their links with investors. We are committed to continuously developing our market in line with the evolving requirements of participants and to reinforce Nasdaq Dubai’s active role in realizing the strategic objectives of Dubai as a capital markets hub.”
Dawod Al-Ghoul, CEO of Capital Bank, explained that the bank plans to use the proceeds of this issuance to support the capital base of Capital Bank Group, noting that “this will serve to propel the Group’s expansion plans, particularly following the opening of the first branch of the National Bank of Iraq in Saudi Arabia. It also flows in direct harmony with our ongoing and far-reaching digital transformation plans, epitomized by the recent introduction of Blink, our flagship digital banking platform that just launched in Jordan and will soon debut in Iraq.”
This issuance, added Al-Ghoul, which came within the requirements of Basel 3, was conceived with the objective of cultivating a diverse base of investors from the region, making Nasdaq Dubai the ideal platform given its broad regional and global appeal.
Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), said: “We are pleased to welcome the bond listing by Capital Bank of Jordan as a first step of its kind from a pioneering establishment. This indicates the close ties between the capital markets of UAE and Jordan, creating a template for other Jordanian and regional institutions to utilize the expertise and infrastructure Dubai offers. A number of leading corporate and sovereign debt issuers have chosen to list on Nasdaq Dubai, which shows their confidence in the market.”
Capital Investments was the sole manager of this bond issuance, with legal counsel offered by Simmons & Simmons to the issuer and Akin Gump Strauss Hauer & Feld to the manager, in cooperation with Jordanian legal consulting firm Obeidat, Tarawneh, and Kurd.
Nasdaq Dubai has witnessed a healthy stream of issuances and listings in 2021, including 30 listings of Sukuk and bonds totaling $23.1 billion and a record-breaking 14 bond issuances valued at US$ 11.2 billion — up 141 percent compared to 2020.
About Nasdaq Dubai: Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS). The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).
About Capital Bank Group: Capital Bank Group is one of the largest banking institutions operating in the Jordanian and regional markets, with assets of JOD 4.3 billion and a total shareholders' equity of nearly JOD 400 million. The group includes Capital Bank, which was established in 1995 and has since grown to become one of the leading Jordanian banks specialized in investment and commercial banking solutions designed for both corporate and individual clients.
In 2005, Capital Bank of Jordan purchased a majority (61.85%) stake in the National Bank of Iraq, which enabled the latter to further broaden its products and services lineup, expand its presence, contribute to financial inclusion in Iraq, support the country’s trade activities, and provide essential services to Jordanian companies operating in the Iraqi market. Meanwhile, Capital Investments, wholly owned by Capital Bank, was established in 2006 to provide specialized investment banking services to its clients through its offices in Jordan and in the UAE/Dubai International Financial Center (DIFC).
Further building on its ambitious expansion strategy, Capital Bank Group also acquired Bank Audi’s operations in both Jordan and Iraq and followed that milestone with the acquisition of the branches and operations of Société Générale Bank in Jordan, with the latter raising the value of group’s assets to around JOD 6 billion.
In May 2021, the National Bank of Iraq continued to realize its expansion strategy by launching its first branch in the Kingdom of Saudi Arabia following the approval of the Saudi Council of Ministers.
In early 2022, Capital Bank launched its digital bank - Blink, to re-imagine the way people conduct their banking operations, targeting young individuals. Blink is the first application in Jordan to offer instant credit cards with limits of up to JOD 1000, making it ideal for owners of home businesses, university students, and individuals in the 18-40 age group.