Market transformation
This transaction will increase access to capital, specifically the volume of finance available for infrastructure investment in West Asia, and encourage replication in the MENAP region.
| Company | PIDG |
| Sector | Multi-sector |
| Country | Jordan |
| Total Project Cost | USD 35 million |
| PIDG Commitment |
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| Dates of PIDG involvement |
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Stricter regulations under Basel III standards in Jordan have caused a disruption in the capacity of banks to provide project finance for infrastructure, reducing availability and increasing the risk aversion and the cost of finance.
With a growing climate infrastructure financing gap, Jordan’s Nationally Determined Contribution (NDC), a climate action plan to cut emissions and adapt to climate impact, is aiming to reduce emissions by 31 per cent compared to a business-as-usual scenario. This is an increase from 14 per cent set out in its initial NDC.
While the Government of Jordan is expected to invest five percent of the financing requirement for these goals, 95 percent is expected to be mobilised through the private sector.
PIDG, through GuarantCo, provided a portfolio guarantee of USD 35 million to Capital Bank of Jordan to help it grow its infrastructure lending portfolio to energy efficient and renewable energy projects.
This transaction will increase access to capital, specifically the volume of finance available for infrastructure investment in West Asia, and encourage replication in the MENAP region.
The capital relief provided through this structure will support climate mitigation and adaptation investments across the market.
The Bank will ensure gender-disaggregated reporting for their workforce and leadership and will develop an action plan to reach 42 per cent senior leadership as women compared to 33 per cent currently.
