The European Bank for Reconstruction and Development (EBRD), the OPEC Fund for International Development and a consortium of international financial institutions are mobilising a Basel III-compliant subordinated loan of up to US$ 135 million, including an A/B structure, for Capital Bank, one of the leading private banks in Jordan. This is the first EBRD A/B loan in Jordan. It includes an EBRD A loan of up to US$ 25 million and a B loan of up to US$ 20 million from ILX Fund.

The consortium of international institutions co-investing in the subordinated debt financing includes the SANAD Fund for MSME, which is providing US$ 15 million and the Green for Growth Fund, which is lending US$ 25 million, both advised by Finance in Motion. The OPEC Fund will lend up to US$ 25 million and the Arab Fund for Economic and Social Development (Arab Fund) will provide as much as US$ 25 million. The financing underscores the scale of the collaborative effort between all lenders. The facility will strengthen Capital Bank’s Tier II capital and enhance its lending capacity to Jordanian micro, small and medium-sized enterprises (MSMEs). Part of the loan will be allocated for on-lending to eligible green sub-projects, contributing to the country’s sustainable development agenda and the Central Bank of Jordan’s Green Strategy for the financial sector.

Tamer Ghazaleh, CEO of Capital Bank, said: “We are proud to partner with leading international development finance institutions. This agreement reinforces Capital Bank’s market leadership and ability to deliver sustainable growth. The loan supports our sustainability vision and enhances our capacity to finance projects that advance the transition to a more sustainable, environmentally responsible economy, in line with Jordan’s Economic Modernization Vision, the Paris Agreement, and other global initiatives. We remain committed to innovative financing solutions that help grow the green economy and enable small and medium-sized enterprises to achieve lasting success.”