IFC and Jordan Ahli Bank Launch First Locally Issued Sustainability Bond

IFC, a member of the World Bank Group, announced it subscribed $50 million in Jordan's first locally issued sustainability bond, launched by Jordan Ahli Bank (JAB), to help boost climate finance for Small and Medium Enterprises (SMEs), support women-owned and -led entities, and create thousands of jobs.

Jordan is increasingly vulnerable to climate-related hazards including rising temperatures, droughts, and landslides.

The bond's proceeds will finance climate and social projects for SMEs, helping them reduce energy costs and avoid greenhouse gas emissions while contributing to the country's green resilience and creating jobs.

Dr. Ahmad Al-Hussein, Jordan Ahli Bank CEO and General Manager said: "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,".

"It aligns seamlessly with Jordan's strategic goals for economic modernization and sustainable development, supporting green businesses—especially SMEs— and enhancing social inclusion."

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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.

Khawaja Aftab Ahmed, IFC's Regional Director for the Middle East, Pakistan and Afghanistan said: "Innovative private sector investments are needed to help Jordan's banking sector transition toward sustainable finance and tackle pressing climate challenges".

"This investment, fully aligned with Jordan's Economic Modernization Vision (EMV) and World Bank Group Country Climate and Diagnostic Report (CCDR), will help Jordan Ahli Bank boost its green lending, expand access to finance for underserved small and medium businesses, including women-owned ones, and contribute to Jordan's growing assets market."

While SMEs represent over 90 percent of all enterprises in Jordan, access to loans remains a struggle, with limited lending to SMEs accounting for only 10.7 percent. 

IFC's investment is expected to help create up to 10,000 jobs as a result of the increased SME lending. Jordan's unemployment rate currently stands at 22 percent.

The investment, which marks IFC's second engagement in Jordan's privately issued bonds, aligns with the World Bank Group's Country Partnership Framework for Jordan, which focuses on creating more and better jobs for youth and women and boosting economic resilience and sustainability by investing in green infrastructure projects.

IFC has been a steadfast partner of Jordan for half a century, supporting the private sector with investments and advice that help increase competitiveness, create jobs, build sustainable infrastructure, and improve financial inclusion.

IFC has invested more than $2 billion across sectors and helped create and maintain 18,000+ jobs per year on average, out of which more than 3,300 are held by women.

IFC has also established its office in Amman as a regional hub for the Middle East, Pakistan, and Afghanistan.

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