Provision of a senior unsecured loan to Bank Al Etihad of up to USD 10 million, under the GCF-GEFF Jordan regional Programme, of which up to USD 500,000 is expected to be co-financed by the Green Climate Fund ("GCF") under the same conditions.
The EBRD loan will enable Bank Al Etihad to support on-lending to eligible private sector commercial sub-borrowers for investments in high performance technologies and services supporting green economy transition.
ETI score: 70
The project supports the Green TI quality by facilitating the direction of funding towards climate mitigation and adaptation technologies and services that will drive the transition to environmentally sustainable, low-carbon and climate-resilient economies.
Bank Al Etihad ("BAE") is a universal commercial bank and the third largest in Jordan with market shares of 7.6% and 8.9% in terms of assets and loans as at H1 2021. Bank Al Etihad was established in 1978 and is listed on the Amman Stock Exchange. BAE serves to corporate, SME, and retail clients through its 52 branches across Jordan.
EBRD Finance Summary
Up to USD 10 million, out of which up to USD 9.5 million equivalent to be provided by EBRD in JOD and up to USD 500,000 to be co-financed by Green Climate Fund ("GCF") in USD.
Total Project Cost
The project offers a combination of longer-term financing and technical expertise into a package that promotes targeted investment in sustainable energy in Jordan.
Environmental and Social Summary
Categorised FI (ESP 2019). Bank Al Etihad has been satisfactorily implementing the Bank's E&S requirements under existing exposure and has submitted regularly Annual Environmental Reports. The bank will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9, apply the EBRD's E&S Risk Management Procedures for SME and Micro Loans and report annually to the EBRD on implementation of the Procedures and the PRs.
Technical Cooperation and Grant Financing
Bank Al Etihad is expected to benefit from the support of the grant resources from the European Union, Green Climate Fund and EBRD Shareholders' special fund. Donor funds will support a comprehensive technical assistance programme on a programme level to provide implementation support to Bank Al Etihad and its customers, and verification of the outcome of completed projects. A non-TC grant from the EU is also expected to provide investment incentives to end borrowers.
Company Contact Information
+962 6 560 7011
Shmeisani, Abdel Al Raheem Waked Street, Amman, Jordan
PSD last updated
18 Jan 2022
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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.
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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 email@example.com to get guidance and more information on IPAM and how to submit a request.