FIF – Jordan MSME Framework – Jordan Ahli Bank

Location:

Jordan

Project number:

47543

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

02 Nov 2016

Status:

Repaying

PSD disclosed:

03 Aug 2015

Translated version of this PSD: Arabic

Project Description

The EBRD is considering a senior unsecured loan of USD 20 million equivalent to be disbursed in JOD (approx. JOD 14million) to Jordan Ahli Bank to support lending to MSMEs in Jordan. The loan is expected to have two tranches of USD 10 million equivalent each. The term of the loan is 5 years with 2 years grace period.

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 Jordan Ahli Bank in building capacity in MSME lending and developing appropriate products.

The Client

Established in 1955, Jordan Ahli Bank is the 6th largest bank in Jordan with total assets of USD 3.3 billion and a market share of 5%. The bank provides a wide range of Corporate, SME, Retail, and Investment Banking services through its network of 56 branches in Jordan, six branches in Palestine, and one branch in Cyprus.

EBRD Finance

Up to USD 20 million equivalent in JOD

Project Cost

Up to USD 20 million equivalent in JOD

Environmental and social categorisation, impact, and mitigation

Categorised FI. Jordan Ahli Bank will be required to comply with EBRD, PRs 2, 4 & 9.  Ahli Bank will be required to implement the Bank's E&S Risk Management Procedures for SME and Micro Loans, undertake the EBRD’s E&S E-learning programme for FIs and submit Annual Environmental and Social reports to the EBRD.

Technical Cooperation

The SME loan will be accompanied by tailor-made MSME lending capacity building TC to assist Jordan Ahli Bank to improve its MSME activities. TC support is being financed by the SEMED Multi-Donor Account and the EBRD Shareholder Special Fund.

Company Contact

Mr Ghassan Muasher – SME Products Development Manager

Direct: + (962) 65638800
Fax: + (962) 65657536

Ghassan.muasher@ahlibank.com.jo

Jordan Ahli Bank, P.O. Box 3103
Amman 11181, Jordan

 

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

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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