Bank al Etihad



Project number:


Business sector:

Financial institutions

Notice type:


Approval date:

15 Nov 2022



PSD disclosed:

20 Jan 2023

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of a subordinated loan to Bank al Etihad of up to USD 35 million equivalent in JOD, including; (i) up to USD 25 million, to support eligible businesses and individuals in Jordan (Tranche A), and (ii) up to USD 10 million for on-lending to women-led SMEs (Tranche B).

Project Objectives

The project will support Bank al Etihad in its on-lending activity to (i) eligible businesses and individuals; and (ii) eligible private local women-led SMEs; piloting EBRD's Women in Business programme in Jordan. The loan will allow Bank al Etihad to strengthen its Tier two capital and optimize its capital structure. Also, the bank will develop a transition plan as defined in the EBRD's Paris alignment methodology for indirect finance.

Transition Impact

ETI score: 73 (Tranche A), 70 (Tranche B)

For Tranche A; the project supports (i) the Well-Governed TI quality whereby Bank al Etihad commits to develop an institutional transition plan, aiming to progressively align its business practices with the goals of the Paris Agreement and (ii) the Resilient TI quality as the subordinated loan will strengthen its capitalization and provide capital to fund growth.

For Tranche B; the project supports (iii) the Inclusive TI quality whereby Bank al Etihad starts adopting lending practices and business models that are more gender responsive as well as (iv) the Competitive TI quality as the project will support the expansion of lending activities to MSMEs in Jordan, with a focus on women-led MSMEs.

Client Information


Bank al Etihad was incorporated in 1978 and has since grown to become one of the leading banking groups in Jordan. It ranks third in Jordan in terms of customer deposits and facilities, and fourth in terms of total assets.

EBRD Finance Summary

Up to USD35 million provided by EBRD in JOD equivalent (JOD24.8 million).

Total Project Cost

Up to USD35 million in JOD equivalent (JOD24.8 million).


The project offers an innovative financing structure through Bank al Etihad's commitment to a transition plan with specific milestones. Moreover, this will be the first project in Jordan to follow EBRD WiB approach and will offer Bank al Etihad capacity building through technical assistance material to the timely realization of the project's objectives.

Environmental and Social Summary

Categorised FI (ESP 2019): Bank al Etihad is an existing client of EBRD and performance on environmental and social (E&S) issues to date has been satisfactory and complies with the EBRD's Performance Requirements (PRs) 2, 4 and 9 under existing exposures. For this transaction, BAE is required to continue to comply with PRs 2, 4 & 9, adhere to the EBRD's E&S requirements and submit AESRs to the Bank. The project requires BAE to apply the E&S Exclusion List, which was amended for the 2019 policy, and also apply the Referral List as per PR9.

Technical Cooperation and Grant Financing

Bank al Etihad will benefit from Technical Cooperation (TC) funds under the EBRD's Corporate Climate Governance (CCG) Client Support Facility, supported by the EBRD Shareholders Special Fund. This TC will help BAE develop an institutional transition plan, which will aim to progressively align its business practices and financial flows with the goals of the Paris Agreement. Moreover, BAE will also benefit from TC funds, supported by the EBRD Shareholder Special Fund to help BAE in strengthening its lending capacity to women, including for improved market understanding, product development, risk management, and marketing.

Company Contact Information

Wasim Salfiti
+962 6 560 7011

PSD last updated

20 Jan 2023

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.

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Tel: +44 20 7338 7168

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Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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