- The Egyptian Arab Land Bank plans to sell its 16 branches in Jordan, with approval from both central banks.
- The bank is assessing its fixed assets and liabilities while receiving five preliminary offers from Jordanian banks for acquisition.
- The sale is driven by regulatory reasons, with the need to raise capital by 20 million Jordanian dinars.
Egyptian Arab Land Bank
What is happening? The Egyptian Arab Land Bank owned by the Egyptian government intended to sell all of its 16 branches in Jordan, according to Asharq Business.
Furthermore, Asharq reports that the banks received approval from both the Central Bank of Jordan and the Central Bank of Egypt. This approval is for the bank to begin conducting due diligence on its branches within the Jordanian market. Furthermore, it is currently assessing its fixed assets and related liabilities.
Capital Raise
Who is it being sold to? It is reported that the bank received five preliminary offers from banks operating in Jordan. Moreover, they have expressed interest in acquiring its branches.
Why is it being sold? The decision to exit the Jordanian market is being attributed to purely regulatory reasons. Furthermore, it is noted that the bank’s continued operations in Jordan would require an increase in its capital by 20 million Jordanian dinars. This would require a total raise in its capital to 70 million Jordanian dinars in compliance with the capital adequacy requirements set by the Central Bank of Jordan.
If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.
