IFC Invests $50M in Jordan's First Sustainability Bond to Boost Climate Finance and SME Growth

The proceeds from this sustainability bond will finance climate and social projects for SMEs, enabling them to reduce energy costs, lower greenhouse gas emissions, and contribute to the country’s green resilience, while also generating employment opportunities.

The International Finance Corporation (IFC), a member of the World Bank Group, has announced its subscription of $50 million in Jordan's first locally issued sustainability bond by Jordan Ahli Bank (JAB). This landmark investment aims to enhance climate finance for Small and Medium Enterprises (SMEs), support women-owned and -led businesses, and create thousands of jobs in Jordan.

Jordan is increasingly susceptible to climate-related challenges, such as rising temperatures, droughts, and landslides. The proceeds from this sustainability bond will finance climate and social projects for SMEs, enabling them to reduce energy costs, lower greenhouse gas emissions, and contribute to the country’s green resilience, while also generating employment opportunities.

"This bond is a significant advancement in our commitment to sustainable and responsible finance, which is a key growth area for both Jordan Ahli Bank and the broader banking sector," said Dr. Ahmad Al-Hussein, CEO and General Manager of Jordan Ahli Bank. "It aligns perfectly with Jordan's strategic goals for economic modernization and sustainable development, supporting green businesses—particularly SMEs—and promoting social inclusion."

The investment is backed by blended finance through IFC’s Global Small and Medium Enterprises Finance (GSMEF) Facility, funded by the governments of the United Kingdom and the Netherlands.

"Innovative private sector investments are essential for Jordan’s banking sector to transition towards sustainable finance and address urgent climate challenges," said Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan, and Afghanistan. "This investment, fully in line with Jordan's Economic Modernization Vision (EMV) and the World Bank Group’s Country Climate and Diagnostic Report (CCDR), will help Jordan Ahli Bank expand its green lending, improve access to finance for underserved SMEs, including those owned by women, and contribute to Jordan's growing financial assets market."

SMEs represent over 90 percent of all enterprises in Jordan, yet access to loans remains limited, with SME lending accounting for only 10.7 percent of total lending. IFC’s investment is anticipated to create up to 10,000 jobs as a result of the increased lending to SMEs, addressing Jordan’s high unemployment rate, which currently stands at 22 percent.

This investment marks IFC’s second engagement in privately issued bonds in Jordan and aligns with the World Bank Group’s Country Partnership Framework for Jordan, which prioritizes creating better job opportunities for youth and women, and enhancing economic resilience and sustainability by investing in green infrastructure.

For half a century, IFC has been a reliable partner to Jordan, supporting the private sector with investments and advice to boost competitiveness, create jobs, develop sustainable infrastructure, and improve financial inclusion. With investments exceeding $2 billion across various sectors, IFC has helped create and sustain an average of 18,000 jobs per year in Jordan, with more than 3,300 of these jobs held by women.

Additionally, IFC has established its office in Amman as a regional hub for the Middle East, Pakistan, and Afghanistan.