IFC has announced it has subscribed $50 million in Jordan’s first locally issued sustainability bond by Jordan Ahli Bank (JAB).
The investment is supported with blended finance through IFC’s Global Small and Medium Enterprises Finance (GSMEF) Facility, funded by the governments of the United Kingdom and the Netherlands.
The bond’s proceeds will finance climate and social projects for SMEs, the two shared, and will contribute to supporting women-owned and -led entities and creating jobs.
Indeed, while SMEs comprise over 90 per cent of all enterprises in Jordan, loan access is challenging—limited lending to SMEs accounts for only 10.7 per cent.
Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan and Afghanistan, said the investment will help expand access to finance for underserved small and medium businesses.
Against the backdrop of a 22 per cent unemployment rate in the country, the IFC said the investment is expected to help create up to 10,000 jobs.
“This bond marks a significant step forward in our commitment to sustainable and responsible finance, a crucial growth area for both Jordan Ahli Bank and the wider banking sector,” said Dr. Ahmad Al-Hussein, Jordan Ahli Bank CEO and General Manager speaking on the sustainability bond.