AMMAN: Capital Bank of Jordan was authorised last week by the Jordan Securities Commission ( JSC ) to raise its capital from JD181.5 million to JD200 million.
The JD18.5 million capital increase will be carried out through capitalising the amount from the JD44.16 million of retained earnings and distributing bonus shares at a rate of 10.19 to shareholders registered in the company’s records at the end of July 7, 2015, which is 15th day from the date of the JSC approval, as required.
Chairman Bassem Khalil Al Salem told the shareholders that the board of directors decided to propose the distribution of cash dividends at a rate of 10 per cent and bonus shares at a rate of 8,8 per cent, but the Central Bank of Jordan ( CBJ ) found it more appropriate that the cash dole out be at a rate of 6 per cent leaving the rate on bonus shares to Capital Bank ‘s discretion.
Consequently, he said, the board opted to distribute bonus shares so that the bank’s capital would become JD200 million and to distribute JD10.9 million in cash dividends at a rate of 6 per cent as approved by the CBJ . Asked about the reason behind the CBJ ‘s request for the change, Salem replied that the central bank was reserved because of the security situation in Iraq and the bank’s large investment there, as it owned 62 per cent of the National Bank of Iraq (NBI).
The stake was 80 per cent until the Central Bank of Iraq asked all commercial banks to raise their capital to 250 billion Iraqi dinars. It was for this reason, the chairman elaborated, that Capital Bank sold part of its shares to Cairo Amman Bank (about 10 per cent), Palestine Telecommunications Company (5 per cent) and Fursan Investment Fund (3.5 per cent).
