People
SDG 9 + 7 – Access to affordable, reliable infrastructure.
Country
Jordan
Sector
Agri-business/Infrastructure
Total commitments
$35m
A local currency second-loss portfolio guarantee of $35m to Capital Bank Jordan to enable the bank to receive capital relief of $70m, enabling the bank to grow its infrastructure portfolio. The bank will use this capital to lend to projects that have a strong focus on climate mitigation, adaptation, and resilience in Jordan (UMIC).
Related SDG Goals
Wider Economy
SDG 8.5 – Sustain productive employment.
Planet
SDG 13 – Climate change mitigation.
Expected impact: Will be monitored as Capital Bank Jordan provides loans. Sectors will include renewables, water, agri-related businesses, and energy efficient buildings. Consumers and businesses highly dependent on the infrastructure provided will feel the largest impact.
Market Transformation
Challenge: There is a financing gap for climate positive infrastructure investment in Jordan and Basel III banking regulations have further tightened the capital available.
Channel: This transaction will increase access to capital available for climate positive infrastructure investment in Jordan.
Outcome: This structure could be replicated by other banks in Jordan to ensure continued investment in climate positive infrastructure investment alongside the implementation of prudent regulatory requirements.
Climate
Transition risk: Transactions shall be reviewed ex-ante to confirm Paris-alignment and transition risk as defined by the PIDG Climate Change Standard.
Resilience: GuarantCo will work with Capital Bank Jordan to build capacity to assess physical risk.
Mobilisation
Mobilised $70m from Capital Bank Jordan.
Gender Empowerment
In 2023, women represented 38% of all employees and 33% of senior executive managers (governance and workforce). The Bank have committed to producing gender disaggregated reporting for their workforce and leadership and will develop an action plan to reach a target of 42% female senior leadership.
HSES
As part of the due diligence process, 15 HSES improvements were identified which are now reflected in the Project Environmental and Social Action Plan (ESAP).
