Akin Gump advises on landmark USD100 million perpetual additional tier 1 bonds issued by Capital Bank of Jordan

Akin Gump has advised Capital Investments (DIFC) Ltd. and Capital Investments and Brokerage Company / Jordan Ltd. as the sole structuring agent and manager, respectively, in respect of Capital Bank of Jordan’s inaugural USD100 million Reg S perpetual Basel III-compliant additional tier 1 capital securities offering.

The issuance is the first-ever additional tier 1 capital securities offering out of Jordan. The capital securities have been admitted to trading on Nasdaq Dubai.

The capital securities were issued on February 24, 2022, by Capital Bank of Jordan, a leading commercial bank in Jordan with a rating of B1 by Moody’s. In a move that is the first of its kind in the Jordanian banking sector, the issuance was approved by the Jordan Securities Commission, the Central Bank of Jordan and the Dubai Financial Services Authority.

Bashar Al Amad, chief executive officer of Capital Investments and Brokerage Company / Jordan Ltd., commented, “The placement received high interest from local as well as regional investors and included institutional investors, high net worth individuals and family offices, which was a testament to our investors’ quality and our placement capabilities.”

“We are very pleased to have advised Capital Investments on this landmark transaction, which is the first-ever additional tier 1 capital securities issuance out of Jordan,” commented Akin Gump partner Rizwan Kanji, who led the Akin Gump team.

Rizwan Kanji led the Akin Gump team. In addition to Kanji, the Akin Gump debt capital markets team advising Capital Investments included counsel Hamed Afzal and associates Nicola Minervini and Sahar Abas. Capital Bank of Jordan, the issuer, was advised by Obeidat, Tarawneh & Kurd in respect of Jordanian law.