Royal Jordanian (RJ, Amman Queen Alia) has confirmed it will proceed with an increase in its share capital following shareholder consent at its recent AGM in Amman.

The carrier said in a disclosure it would place 28.2 million new shares with the Jordanian Ministry of Finance's Government Contributions Managing Co. at a par value of JOD1/share with a discount of JOD0.610/share, i.e. JOD0.39/share.

RJ Board of Directors Chairman Said Darwazeh said the share capital increase would bring the carrier's overall share capital from 246.4 million shares to 274.6 million shares.

The move is part of a debt restructuring strategy initiated in 2015 wherein the carrier's overall share capital was reduced from JOD84.3 million to JOD46.4 million to help write off a portion of the financial losses it incurred in 2014.

With that successfully completed and with its debt issues addressed, Royal Jordanian began the process of re-increasing its share capital by JOD200 million over the course of 2016 and 2017.