Abraaj takes stake in Jordan

UAE form acquires 10.7% of Jordan National Bank
By Staff writer
Sun 01 Oct 2006 12:00 AM

Abraaj Capital has acquired 10% of the equity of Jordan National Bank (JNB).

The deal has been concluded through Abraaj Capital’s Abraaj Special Opportunities Fund (ASOF) II.

The Jordanian Exchange Commission has approved the capital increase of 8 million shares giving Abraaj a total holding of 11.8 million shares, equivalent to 10.7% shareholding.

JNB is listed on the Amman Stock Exchange (ASE).

Shirish Saraf, managing director, Abraaj Capital, said: “We believe that this deal further enhances Abraaj Capital’s exposure in the buoyant regional financial services sector.

The JNB stake falls in line with ASOF II’s strategic focus on strong minority block positions in well established listed companies with attractive growth potential .”

Established in 1955, Jordan National Bank (JONB) is one of Jordan’s leading financial institutions offering retail and corporate banking services such as deposits, lending, trade finance, foreign exchange, credit cards and investments.

JNB has a local and regional presence with 48 branches in Jordan, nine in Lebanon, five in Palestine, an international banking unit in Limassol, Cyprus and a brokerage arm in Abu Dhabi.

“We feel that JNB stock is under valued and has the potential to out perform ASE indices.

Abraaj Capital has great confidence in JNB’s management which is improving operational efficiencies and also implementing growth strategies,” said Saraf.

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