Amman, Jordan, August 26, 2024—IFC, a member of the World Bank Group, announced it subscribed $50 million in Jordan's first locally issued sustainability bond, by Jordan Ahli Bank (JAB), to help boost climate finance for Small and Medium Enterprises (SMEs), support women-owned and -led entities, and create thousands of jobs.
Jordan is increasingly vulnerable to climate-related hazards including rising temperatures, droughts, and landslides. The bond's proceeds will finance climate and social projects for SMEs, helping them reduce energy costs and avoid greenhouse gas emissions, while contributing to the country's green resilience and creating jobs.
"This bond marks a significant step forward in our commitment to sustainable and responsible finance, a crucial growth area for both Jordan Ahli Bank and the wider banking sector," said Dr. Ahmad Al-Hussein, Jordan Ahli Bank CEO and General Manager. "It aligns seamlessly with Jordan's strategic goals for economic modernization and sustainable development, supporting green businesses—especially SMEs— and enhancing social inclusion."
The investment is supported with blended finance through IFC's Global Small and Medium Enterprises Finance (GSMEF) Facility, funded by the governments of the United Kingdom and the Netherlands.
"Innovative private sector investments are needed to help Jordan's banking sector transition toward sustainable finance and tackle pressing climate challenges," said Khawaja Aftab Ahmed, IFC's Regional Director for the Middle East, Pakistan and Afghanistan. "This investment, fully aligned with Jordan's Economic Modernization 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."
While SMEs represent over 90 percent of all enterprises in Jordan, access to loans remains a struggle, with limited lending to SMEs accounting for only 10.7 percent. IFC's investment is expected to help create up to 10,000 jobs as a result of the increased SME lending. Jordan's unemployment rate currently stands at 22 percent.
The investment, which marks IFC's second engagement in Jordan's privately issued bonds, aligns with the World Bank Group's Country Partnership Framework for Jordan, which focuses on creating more and better jobs for youth and women, and boosting economic resilience and sustainability by investing in green infrastructure projects.
IFC has been a steadfast partner of Jordan for half a century, supporting the private sector with investments and advice that help increase competitiveness, create jobs, build sustainable infrastructure, and improve financial inclusion. IFC has invested more than $2 billion across sectors and helped create and maintain 18,000+ jobs per year on average, out of which more than 3,300 are held by women.
IFC has also established its office in Amman as a regional hub for the Middle East, Pakistan, and Afghanistan.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org
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About GSMEF
The Global SME Finance Facility, a blended-finance partnership funded by the UK Foreign, Commonwealth & Development Office (FCDO) and the Netherlands Ministry of Foreign Affairs, is focused on helping to close the financing gap faced by SMEs in emerging markets. Catalyzing access to finance for SMEs, the facility has a goal of generating one million new jobs in the SME sector. For more information, visit www.ifc.org/gsmef
About Jordan Ahli Bank
Jordan Ahli Bank is a leading financial institution with a rich national heritage and identity, committed to promoting shared prosperity and sustainable economic development in Jordan. It provides innovative banking products and exceptional, high-quality services to meet diverse banking needs and requirements. With a wide array of specialized products and services, the bank delivers added value and efficiency while ensuring the highest levels of customer care and satisfaction. www.ahli.com
