A new investment bank under formation in Jordan is expected to be up and running by March, according to one of its founders, financier Faisal Kudsi.

Once operational, the new bank - called Jordan Investment Trust (Jordinvest) - will work on mergers and recapitalisations for local banks (MEED 4:7:97).

Jordinvest will have share capital of at least JD 20 million ($28 million) and this could be as high as $40 million if a share offering, which is currently in the works, is oversubscribed. Kudsi says that several Arab institutions want to invest in the bank, as well as the International Finance Corporation (IFC -part of the World Bank). The local partner in Jordinvest is a consultancy run by a former governor of Jordan's central bank, Said Nabulsi, who is chairman of the new bank. Its shareholders include Gulfinvest, a Kuwait-based investment holding company managed by Kudsi and a Kuwaiti businessman, and Lebanon Invest, the Beirut-based investment bank. Lebanon Invest and Gulfinvest both own a portion of each other's shares.

Jordan's banking sector is going through a period of consolidation. 'There are about 20 banks in Jordan that need recapitalising. That's what Jordinvest is going to do,' says Kudsi. One of the new bank's first deals will involve buying two banks and merging them, at a cost of $15 million-20 million. The merged institution will then be floated on the local stock market. Kudsi says that Jordinvest has a similar project lined up with another two banks, but this will not involve buying them. 'Jordinvest's project pipeline for 1998 is already full,' he says.