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IFC + Jordan Ahli Bank launch Jordan’s first locally-issued sustainability bond: Jordan Ahli Bank has issued the country’s first sustainability bond valued at USD 50 mn in collaboration with the International Finance Corporation (IFC), according to a statement. The investment was provided through the IFC’s Global Small and Medium Enterprises Finance Facility which is funded by the UK and the Netherlands.
Where’s the money going? The bond’s proceeds will be channeled to increasing the onlending of climate finance for small and medium-sized enterprises seeking to decarbonize operations and cut down on energy costs and emissions, an IFC statement reads.
SMEs in Jordan have limited access to loans: SMEs account for 90% of Jordanian enterprises, yet struggle to gain access to loans as lending to SMEs only amounts to 10.7%. The IFC investment will also support the creation of up to 10k jobs to assist Jordan in reducing its 22% unemployment rate.
What they said: “Innovative private sector investments are needed to help Jordan’s banking sector transition toward sustainable finance and tackle pressing climate challenges,” IFC’s Regional Director for the Middle East, Pakistan and Afghanistan Khawaja Aftab Ahmed said.
IFC 💚 green bonds: The IFC helped Jordan Kuwait Bank issue in March last year USD 50 mn worth of five-year green bonds.The proceeds of the issuance were earmarked for the development of energy-efficient buildings, renewable energy plants, and electric vehicle projects in the country.
