FIF - West Bank and Gaza - Quds Bank WiB Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a USD 10.0 million (EUR 8.8 million) financing package in favor of Quds Bank, comprised of: (i) a USD 8.0 million loan under the WB&G Green Economy Financing Facility (GEFF) for gender-responsive on-lending to eligible MSMEs and residential sub-borrowers based in the West Bank; and (ii) a USD 2.0 million Women in Business (WiB) loan for on-lending to eligible women-led businesses in the West Bank.

The GEFF loan will be accompanied by a comprehensive package of incentive grants and technical assistance funded by the European Union (EU) through the Sustainable Growth4All Program. The WiB loan will be accompanied by a 20% first-loss risk cover (FLRC) funded by the EU through its Initiative for Financial Inclusion (Neighbourhood Investment Facility - SEMED Financial Inclusion Program).

Project ID 56458

Status In Exploratory, Pending Final Review

Location

West Bank and Gaza

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

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

Company Contact Information

Kais Zuhaika, Head of Financial Institutions
Kais.Zuhaika@qudsbank.ps
+970 599 8200 65
+ 970 2 2983321
www.qudsbank.ps
Al-Masyoun, P.O Box 2471fa, Ramallah, Palestine

Project ID 56458

Status In Exploratory, Pending Final Review

Location

West Bank and Gaza

Business Sector

Financial Institutions

Notice Type

Private

Approval Date

11 Jun 2025

Disclosure date

09 May 2025

Project Description

Project Objectives

The GEFF loan will enable Quds Bank to scale up green investments in the West Bank through gender responsive on-lending to MSME and residential sub-borrowers for small-scale renewable energy, water, energy and resource efficiency projects, including the circular economy concept, and support of relevant green technology supply chains. The WiB loan will be exclusively dedicated to supporting women-led businesses, a largely underbanked segment of the Palestinian economy.

Transition Impact

As one of the largest banks in WB&G, Quds Bank is a key partner to deploy support to local private MSMEs and residential sub-borrowers in the West Bank. Accordingly, the expected transition impact for the project is expected to be derived from (i) the Green quality, by contributing to the objective of the WB&G GEFF Program of promoting the transition to an environmentally sustainable, low-carbon and climate-resilient economy in WB&G; (ii) the Inclusive quality, by promoting greater financial inclusion to women businesses through WiB loan; and (iii) the Competitive quality, by supporting the expansion of QB's lending to private women MSMEs, through WiB loan.

Client Information

QUDS BANK

Quds Bank ("QB") is one of the largest banks operating in the Palestinian market and has been listed on the Palestine Exchange since 1997. Major shareholders include the Abdul-Latif Jarab family (ca. 30%, including Akram Abdul-Latif Jarab who holds 18%), Palestinian Pension Agency (17%) and Jordan Kuwait Bank (11%), with the remaining shareholders owning under 5% each. QB is an existing client with an active TFP limit of USD 15m and a USD 8.0m SME loan.

EBRD Finance Summary

USD .00

USD 10,000,000 out of EBRD's WB&G Net Income Allocation Trust Fund, split between:

(i) USD 8,000,000 for WB&G Green Economy Financing Facility (GEFF); and

(ii) USD 2,000,000 for WB&G Women in Business Facility (WiB).

Total Project Cost

USD 2,000,000.00

Additionality

The project provides long term financing on commercial terms not readily available in the market, while addressing the current financing gap, by increasing access to finance to underserved segments of the economy, as well as assisting in the transition towards a greener and more inclusive economy by supporting the expansion of green and women-focused lending, through the GEFF and WiB loan respectively. EBRD will also provide TC material to the timely realisation of the project's objectives, including support to strengthen the client's lending practices to finance the green economy and underserved women-led MSMEs in WB&G.

Environmental and Social Summary

Categorised FI (ESP 2024). Quds Bank, an existing client, has demonstrated satisfactory environmental and social (E&S) performance under its current exposures. The proceeds will be used for i) on-lending to MSMEs and residential sub-borrowers based in the West Bank for eligible green investments, and ii) on-lending to eligible women-led businesses in the West Bank, which are considered low to medium risk from an E&S perspective. Quds Bank has an E&S policy and management system commensurate with the E&S risk level. Quds Bank should maintain its E&S management system to effectively assess, manage, and monitor the E&S risks and impacts associated with its subprojects, align with the EBRD's guidance for SME financing, and comply with the Environmental and Social Requirements (ESRs) 2, 4, and 9 under the 2024 ESP, including adherence to the EBRD's 2024 exclusion list. Quds Bank should also submit annual E&S reports to the Bank. Sub-borrowers financed through Quds Bank's loans must meet national environmental, health, safety, and labour regulations.

The project is determined aligned with the Paris Agreement based on the application of the EBRD's Paris alignment approach for indirectly financed investments. The alignment determination is based on the application of pillar 1 (counterparty commitment to the Paris Agreement) and pillar 2 (sub-transactions filter).
100% of the EBRD financing under GEFF loan is classified as green finance, as it supports activities to achieve climate mitigation and climate adaptation objectives. The attribution is made in line with the methodology to determine the green finance attribution of EBRD investments. The expected green outcomes of the project are GHG emissions reduction about 40 thousand tCO2 a year, water savings about 38 thousand m3 a year and additional renewable generation capacity installed 540 kW.

Technical Cooperation and Grant Financing

The facilities are accompanied by a comprehensive technical cooperation package, designed to strengthen institutional capacity and support the development of green and women-focused lending. Quds Bank will benefit from integrated solutions including targeted technical assistance, access to knowledge platforms, and EBRD-developed tools such as the Green Technology Selector, the GEFF Monitoring and Information System, and the Green Finance Academy. In addition, gender-focused activities form an integral part of the GEFF programme, aiming to reduce barriers women face in accessing green finance by building the capacity of the PFI on gender-responsive green finance and enhancing women sub-borrowers' skills in green finance and technologies. The WiB loan will be accompanied with tailored technical assistance for strengthening on-lending to local women-led MSMEs. These assignments will be funded by the EU-EBRD Sustainable Growth4All program. In addition, QB will also benefit from a FLRC funded from the European Union Neighbourhood Investment Facility - SEMED Financial Inclusion Program ("EU SEMED FIP"), to support the client in the testing and adaptation of new requirements and products for women-led MSMEs.

Company Contact Information

Kais Zuhaika, Head of Financial Institutions
Kais.Zuhaika@qudsbank.ps
+970 599 8200 65
+ 970 2 2983321
www.qudsbank.ps
Al-Masyoun, P.O Box 2471fa, Ramallah, Palestine

PSD Last Updated

09 May 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

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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FIF - West Bank and Gaza - Quds Bank WiB Loan

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)