The European Bank for Reconstruction and Development (EBRD), the OPEC Fund for International Development, and a consortium of leading international financial institutions have announced a collaborative effort to provide a Basel III-compliant subordinated loan of up to US$135 million for Capital Bank, one of Jordan’s largest private banks. The financing structure includes an A/B loan arrangement and aims to strengthen the bank’s capital base while boosting its ability to support small businesses and green projects in the country.
This initiative marks the first-ever EBRD A/B loan in Jordan, reflecting the growing cooperation between global development finance institutions to enhance the country’s financial resilience and sustainability. The EBRD will provide an “A” loan of up to US$25 million, while the “B” loan—amounting to up to US$20 million—will come from the ILX Fund. In addition, several other international institutions are co-investing in the subordinated debt financing. The SANAD Fund for MSME will contribute US$15 million, and the Green for Growth Fund (GGF) will provide US$25 million. Both funds are advised by Finance in Motion.
The OPEC Fund for International Development will lend up to US$25 million, while the Arab Fund for Economic and Social Development (Arab Fund) will contribute another US$25 million. This coordinated financing effort highlights the strength of international partnerships working together to advance economic development and financial inclusion in Jordan. The funds will enhance Capital Bank’s Tier II capital, expanding its capacity to lend to micro, small, and medium-sized enterprises (MSMEs)—a key driver of employment and innovation in the Jordanian economy. A portion of the loan will also be dedicated to financing eligible green projects, aligning with Jordan’s sustainable development objectives and the Central Bank of Jordan’s Green Strategy for the financial sector.
Commenting on the collaboration, Mark Davis, Managing Director for the Southern and Eastern Mediterranean region at EBRD, said, “This initiative showcases how international financial institutions are joining forces to promote economic growth and expand access to green finance. We are proud to have played a leading role in bringing this partnership together to strengthen Jordan’s banking and sustainability ecosystem.”
Tamer Ghazaleh, CEO of Capital Bank, expressed his appreciation for the partnership, stating, “We are proud to work alongside leading international development finance institutions in this milestone agreement. This loan reinforces Capital Bank’s leadership position and strengthens our ability to achieve sustainable growth. It aligns perfectly with our vision to support Jordan’s Economic Modernization Vision and the Paris Agreement by financing projects that drive environmental responsibility and sustainable economic development. We remain committed to offering innovative financial solutions that help build a strong green economy and empower MSMEs to succeed.”
Capital Bank is the fourth-largest commercial bank in Jordan, listed on the Amman Stock Exchange with a market capitalization of JOD 728 million (approximately US$1 billion) as of October 2025. The bank plays a significant role in supporting Jordan’s economic growth through its diverse portfolio of retail, corporate, and SME banking services.
Since beginning its operations in Jordan in 2012, the EBRD has invested more than €2.2 billion across 82 projects in the country, with approximately 74 percent of its investments directed toward the private sector. These include support for the banking industry through MSME loans, subordinated debt, and trade finance facilities, reflecting EBRD’s continued commitment to strengthening Jordan’s financial system and supporting inclusive, sustainable growth.
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