EBRD lends Bank al Etihad $25M to fund green projects and MSMEs in Jordan
What's the deal? The European Bank for Reconstruction and DevelopmentDealroom has a profile for this one. Try Dealroom → (EBRD) has agreed a subordinated loan of up to $25 million to Bank al EtihadDealroom has a profile for this one. Try Dealroom →, one of Jordan's leading commercial banks. The debt will bolster the bank's Tier 2 capital under Basel III rules, letting it expand lending across the country.
Where the money goes: At least 60% of the funding is earmarked for green investments in climate change mitigation, adaptation, and sustainable development. The remaining 40% will back micro, small and medium-sized enterprises (MSMEs), including businesses led by women and youth and companies in underserved regions.
Why now? The loan aligns with the EBRD's Middle East Conflict Response framework, which supports economies facing ongoing geopolitical challenges. It also aims to strengthen the resilience of Jordan's financial sector.
What's the endgame? This is the EBRD's fourth subordinated loan to Bank al Etihad, extending a partnership that dates to 2015 and has focused on MSME lending and sustainable development. Bank al Etihad was the first bank in Jordan to join the EBRD's Green Economy Financing Facility, which funds climate-friendly technologies for individuals and small businesses.
The signal: The EBRD has committed more than €2.3 billion across 86 projects in Jordan since 2012, with roughly 70% supporting the private sector. The latest facility underscores the lender's continued push to pair green finance with financial inclusion in a market under geopolitical strain.
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