- Basel III-compliant subordinated loan of US$ 30 million for Bank al Etihad
- Third EBRD loan facility for Bank al Etihad, supporting sustainable finance and MSMEs in Jordan
- Funds will drive green economic growth and financial inclusion for underserved communities
The European Bank for Reconstruction and Development (EBRD) is providing Bank al Etihad with a Basel III-compliant subordinated loan of US$ 30 million (€27.3 million) to enhance its capacity in the area of sustainable finance. This loan will expand Bank al Etihad’s green finance portfolio and support micro, small and medium-sized enterprises (MSMEs) in Jordan – particularly those that are led by young people or women, or located in underserved regions of the country.
The subordinated loan will prioritise sustainable finance, with 60 per cent of the funds being allocated to green financing, supporting investment in industrial energy efficiency and renewable energy. The remaining 40 per cent will be dedicated to social assets, including support for inclusive finance and underserved MSMEs.
In Jordan, access to finance is critical for economic growth and inclusive development. However, access remains limited for many MSME segments, with availability and affordability often tied to firm size, borrower type and geographic location.
This new facility will strengthen Bank al Etihad’s capital base, support its growth strategy and boost its overall resilience. It will also support Jordan’s transition to a sustainable low-carbon economy, in line with the country’s nationally determined contributions under the Paris Agreement.
This is the third EBRD facility provided to Bank al Etihad, which became the first Jordanian partner bank to adopt the EBRD’s Paris alignment methodology in 2022.
Matteo Patrone, the EBRD’s Vice President for Banking, said: “This facility marks a significant step forward in our longstanding partnership with Bank al Etihad. It reflects our shared commitment to strengthening the resilience of the banking sector in Jordan, driving sustainable growth, and expanding access to finance in underserved communities. We are proud to be working with Bank al Etihad to promote a more inclusive and sustainable financial future.”
Nadia Al Saeed, CEO of Bank al Etihad, added: “This new facility builds on our ongoing collaboration with the EBRD and reflects our shared focus on expanding access to sustainable finance. It will allow us to channel more targeted financing to areas that are key to Jordan’s development, including renewable energy, energy efficiency, and water and climate change adaptation projects. These priorities are closely aligned with our long-term strategy and our commitment to inclusive, sustainable growth.”
Bank al Etihad was also the first bank in Jordan to join the EBRD’s Green Economy Financing Facility, supporting the country’s sustainability agenda by extending funding for climate change mitigation and adaptation technologies and services. This partnership has played a pivotal role in facilitating the transition to a more sustainable economy.
Since 2012, the EBRD has invested more than €2.3 billion in Jordan through 75 projects – 72 per cent of which has gone to the private sector. This includes support for the Jordanian banking sector through loans for MSMEs, subordinated debt and trade finance facilities.