The European Bank for Reconstruction and Development (EBRD) is strengthening its support for sustainable finance in Jordan through a new subordinated loan of up to US$25 million to Bank al Etihad (BAE), one of the country’s leading commercial banks.
The financing aims to enhance Bank al Etihad’s Tier 2 capital base under Basel III requirements, allowing the bank to expand lending and support economic growth across Jordan.
The EBRD-backed facility will help finance eligible climate-resilient and inclusive projects across Jordan. At least 60% of the funding will be allocated to green investments, supporting initiatives focused on climate change mitigation, adaptation, and sustainable development.
The remaining 40% will support micro, small and medium-sized enterprises (MSMEs), including businesses led by women and youth, as well as companies operating in underserved regions. The financing aims to improve access to capital for businesses that contribute to job creation and economic growth.
The new subordinated loan will also help strengthen the resilience of Jordan’s financial sector and aligns with the EBRD’s Middle East Conflict Response framework, which supports economies facing ongoing geopolitical challenges.
The agreement marks the EBRD’s fourth subordinated loan to Bank al Etihad, reflecting a strong partnership that has continued since 2015. The collaboration has focused on expanding lending opportunities for MSMEs and supporting sustainable economic development in Jordan.
Bank al Etihad was also the first bank in Jordan to join the EBRD’s Green Economy Financing Facility, helping provide financing for climate-friendly technologies and services for individuals and small businesses.
Since 2012, the EBRD has provided more than €2.3 billion through 86 projects in Jordan, with around 70% of its investments supporting the private sector. Its work has included financial support for MSME lending, subordinated debt, and trade finance facilities.
The latest financing agreement reinforces the EBRD’s commitment to expanding green finance, improving financial inclusion, and supporting sustainable private sector growth in Jordan.
