Reading Time: 3 minutes
The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are together providing US $10 million to Cairo Amman Bank (CAB) to strengthen climate investments in Jordan.
The financial package of US$ 10 million, of which US$ 2.5 million was co-financed by the GCF, will enable CAB to extend sub-loans to small and medium-sized enterprises (SMEs) that invest in climate change mitigation and adaptation technologies and services.
This is the first facility for CAB under the GCF-GEFF Regional Framework in Jordan and will include a technical cooperation (TC) package funded by the EBRD, the European Union, and GCF. The TC package will include an assessment of the optimal technology for better integrating climate change practices into the local private MSMEs and households targeted. It will also include technical advice on the implementation of the proposed energy investments as well as sessions to raise awareness and build capacity in relation to climate change mitigation and adaptation technologies. Eligible sub-borrowers are also expected to receive investment incentives funded by the European Union.
Jordan’s population has grown rapidly, reaching 11.2 million, with increased demand for water and energy. This new investment will benefit the country’s private sector and is expected to contribute to sustainable economic growth and transition to a greener economy.
The loan agreement was signed by Jürgen Rigterink, EBRD’s First Vice President and Head of Client Services Group, and Kamal Al-Bakri, Chief Executive Office of Cairo Amman Bank.
Mr. Rigterink said, “We are proud of our continued partnership with Cairo Amman Bank and we are keen to help Jordan build a greener and more resilient economy. Small and medium-sized businesses are key in building a green and sustainable economy.”
Kamal Al Bakri, chief executive officer of Cairo Amman bank, said, “It gives us great pleasure to announce a new era of green climate investments in Jordan in collaboration with EBRD and GCF. This facility will enable our bank to invest in climate change and green technology.”
“Through this cooperation, we have received the right moral and financial support to strengthen our partnership with EBRD and to continue the success stories that contributed much to our country’s economic growth in the past few decades,” he added.
Cairo Amman Bank is the sixth-largest bank in Jordan, with total assets of US$ 5.2 billion as of 30 June 2022. While CAB focuses predominantly on retail operations, it is a universal bank that offers a wide range of products and services including micro, SME, and corporate lending.
Since it began investing in Jordan in 2012, the EBRD has provided more than €1.8 billion in financing through 66 projects in the country, including financial support for the Jordanian banking sector through MSME loans, subordinated debt, and trade finance facilities.