The International Finance Corporation (IFC), a member of the World Bank Group, has committed $50 million to the first locally issued sustainability bond by Jordan Ahli Bank (JAB). This significant investment aims to propel climate finance for Small and Medium Enterprises (SMEs), bolster women-led businesses, and generate thousands of job opportunities.
The proceeds from the bond will be directed towards financing SMEs in climate and social projects, helping them reduce energy costs, cut greenhouse gas emissions, and contribute to Jordan’s green resilience and job creation efforts and promote job creation.
Dr. Ahmad Al-Hussein, CEO and General Manager of Jordan Ahli Bank, remarked on the bond’s strategic fit with national economic goals, noting, “This bond marks a significant step forward in our commitment to sustainable and responsible finance. It aligns seamlessly with Jordan’s strategic goals for economic modernization and sustainable development, supporting green businesses and enhancing social inclusion.”
The investment is backed by IFC’s Global Small and Medium Enterprises Finance Facility, funded by the UK and the Netherlands, aimed at transforming Jordan’s banking sector towards sustainable finance.
Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan and Afghanistan said, emphasised the necessity of innovative investments to advance sustainable finance and address climate challenges. He said, “This investment, fully aligned with Jordan’s Economic Modernisation Vision (EMV) and World Bank Group Country Climate and Diagnostic Report (CCDR), will help Jordan Ahli Bank boost its green lending, expand access to finance for underserved small and medium businesses, including women-owned ones, and contribute to Jordan’s growing assets market.”
In Jordan, where SMEs represent over 90% of all businesses but receive only 10.7% of total lending, IFC’s investment is critical. It is expected to create up to 10,000 jobs, significantly impacting the country’s 22% unemployment rate.