GCF GEFF Regional - Jordan - Cairo Amman Bank

Location:

Jordan

Project number:

53223

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

14 Dec 2021

Status:

Approved

PSD disclosed:

09 Feb 2022

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."

Project Description

Provision of up to USD 25 million senior unsecured loan to Cairo Amman Bank ("CAB"), under the GCF-GEFF Jordan Programme . Up to USD 6.25 million of this loan is expected to be co-financed by the Green Climate Fund ("GCF") under the same conditions.

Project Objectives

The EBRD loan is intended to support the development of a strong demand-driven market for investments in high-performance technologies and services in a gender-responsive manner. The facility will be supporting the green economy in Jordan via investments in climate change mitigation and adaptation technologies, best practices and providing eligible sub-borrowers with access to dedicated green finance tools, machinery, equipment and solutions as well as awareness raising and capacity building.

Transition Impact

ETI score: 70

The project supports the Green TI quality through the provision of funding and technical assistance to CAB to promote private sector investments in efficient climate change mitigation and adaptation technologies. This will support building a green economy in Jordan by facilitating the accelerated market penetration of climate technologies.

Client Information

CAIRO AMMAN BANK

Cairo Amman Bank ("CAB") is the 6th largest bank in Jordan by assets. The bank is a publicly listed company trading on Amman Stock Exchange with market cap of USD 256.5m as at 06 December 2021. The bank's main shareholders include Al Masri family (33.5% aggregate stake), Banque Misr (10%), Social Security Corporation (7.7%) and Palestinian Telecommunication Group (5.9%). The bank's free float on Amman Stock Exchange is ca 27% of shares.

EBRD Finance Summary

USD 18,750,000.00

Senior unsecured loan of up to USD 25 million, of which up to USD 6.25 million is expected to be co-financed by GCF.

Total Project Cost

USD 25,000,000.00

Senior unsecured loan of up to USD 25 million, of which up to USD 6.25 million is expected to be co-financed by GCF.

Additionality

The project offers a combination of longer-term financing and technical expertise into a package that promotes targeted investment in sustainable energy, in the highly diversified private sector in Jordan.

Environmental and Social Summary

Categorised FI (ESP 2019): Cairo Amman Bank is an existing client and has demonstrated compliance with the EBRD's E&S Policy under previous exposure. The bank will be required to continue to apply EBRD's E&S Risk Management Procedures for SME Loans and ensure the sub-projects comply with national requirements for environment, health and safety, social and labour standards. The Client will need to apply the updated Exclusion and Referral lists as per EBRD's 2019 E&S Policy.

CAB will continue to submit annual environmental and social reports to EBRD to monitor their performance.

Technical Cooperation and Grant Financing

CAB is expected to benefit from the support of the grant resources from the EU as well as the EBRD Shareholders Special Fund ("SSF"). Donor funds will support a comprehensive technical assistance programme to provide implementation support to CAB and its customers, and verification of the outcome of completed projects. Grants are expected to provide investment incentives to CAB's end-borrowers.

Company Contact Information

Ola Odeh
ola.odeh@cab.jo
+962 6 500 6749
www.cab.jo

PSD last updated

09 Feb 2022

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 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 the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both 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. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 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 following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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