EBRD and Bank al Etihad support growth of small and women-led businesses in Jordan
December 12, 2022
The European Bank for Reconstruction and Development (EBRD) is providing Bank al Etihad (BAE) with a US$ 35 million Basel III compliant subordinated loan to strengthen its lending capacity for businesses, individuals as well as women-led micro, small and medium-sized enterprises (MSMEs) in Jordan.
The financing package consists of up to US $25 million to BAE for on-lending to businesses and individuals in Jordan, and up to US $10 million for on-lending to women-led MSMEs under the EBRD Women in Business programme in Jordan. The programme will help BAE to adapt its products to better suit women-led MSMEs, strengthen their lending practices and improve marketing and product development.
This new financing to BAE is the first project in the southern and eastern Mediterranean (SEMED) region to incorporate the EBRD’s Paris alignment methodology in the financial sector. A technical assistance package provided under the EBRD’s Corporate Climate Governance Facility will assist BAE in developing a pilot institutional transition plan to align its business practices and financial flows with the goals of the Paris Agreement, integrating climate risk considerations, identifying business opportunities and supporting its clients with low carbon products and services.