Jordan MSME Framework - Cairo Amman Bank

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 46053

Status Complete

Location

Jordan

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 46053

Status Complete

Location

Jordan

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

17 Sep 2014

Disclosure date

14 Aug 2014

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Arabic

Project Description

The EBRD is considering a senior unsecured loan of US$20 million equivalent to be disbursed in JOD (approx. JOD 14 million) to support lending to local MSMEs. The Facility is expected to have two tranches of US$10 million equivalent each. Cairo Amman Bank (“CAB”) will be eligible to benefit from the loan guarantee scheme comprised of (i) a first loss cover provided by the EBRD and (ii) a second loss cover provided by the Jordan Loan Guarantee Corporation (JLGC) provided that it meets the necessary portfolio criteria. Furthermore, CAB will be eligible to benefit from tailor made technical assistance.

Transition Impact

Sources of Transition Impact:

- Market Expansion: Jordanian MSMEs account for 95 per cent of active businesses in Jordan, providing 70 per cent of private sector total employment and generating around 40 per cent of GDP. Yet, access to finance remains an important impediment to MSMEs’ growth, with bank lending to MSMEs estimated at around 11 per cent of total lending.

- Skills Transfer: Dedicated technical assistance will support Jordanian banks in building capacity in MSME lending and developing appropriate products.

The Client

Established in 1960, CAB is the fifth largest bank in Jordan with total assets of US$3.1 billion as of 2013. While primarily a retail bank, Cairo Amman Bank also offers a full range of products and services to micro, SME and corporate clients, including brokerage and leasing products. CAB is listed on the Amman Stock and rated B2 (LT) with a stable outlook by Moody’s, in line with Jordan’s sovereign rating.

EBRD Finance

Senior unsecured term facility of 5 years with 2 year grace period.

Project Cost

Up to US$20 million equivalent in JOD.

Environmental Impact

Categorised FI. CAB will be required to comply with the EBRD’s Performance Requirements for FIs (specifically, PR2 Labour and Working Conditions and 9 Financial Intermediaries) and adhere to the EBRD’s Environmental and Social Exclusion and Referral Lists and submit Annual Environmental and Social Reports to the EBRD.

Technical Cooperation

None.

Company Contact

Ola Odeh

Financial Institutions Department

ola.odeh@cab.jo

Transition impact

ETI Score:60

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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