Baku, Azerbaijan, April 8. The European Bank
for Reconstruction and Development (EBRD) is providing a $30
million (27.3 million euros) Basel III-compliant subordinated loan
to Bank al Etihad in Jordan, Trend reports.
The funding aims to strengthen the bank’s capital base and
expand its capacity in sustainable and inclusive finance.
Sixty percent of the loan will be allocated to green financing,
supporting projects in renewable energy and industrial energy
efficiency. The remaining 40 percent will go toward social
financing, with a focus on micro, small, and medium-sized
enterprises (MSMEs), particularly those led by women and youth or
operating in underserved areas.
The loan is intended to improve access to finance in Jordan,
where availability remains limited for many MSME segments. It also
supports the country’s transition to a low-carbon economy in line
with national climate goals under the Paris Agreement.
This is the third EBRD facility provided to Bank al Etihad,
which was the first Jordanian bank to adopt the EBRD’s Paris
alignment methodology in 2022. The bank also participates in the
EBRD’s Green Economy Financing Facility.
Since 2012, the EBRD has invested over 2.3 billion euros in
Jordan across 75 projects, with a majority directed to the private
sector.