Khaberni - Capital Bank announced the signing of a Green Tier 2 financing agreement, which is the largest of its kind with a group of prestigious regional and international financial institutions led by the European Bank for Reconstruction and Development, with a total value of $135 million USD for a period of 10 years. This agreement reflects the increasing international confidence in the Jordanian economy and indicates the strength of Capital Bank's ambitious strategy and its robust financial position.
The agreement was announced during an official ceremony held under the patronage of the Governor of the Central Bank of Jordan, His Excellency Dr. Adel Al-Sharkas, and in the presence of the Chairman of Capital Bank Group, His Excellency Bassem Khalil Al-Salem, the CEO of the bank Mr. Tamer Ghazaleh, and representatives of international and regional financial institutions in Amman.
This subordinated loan, classified within the second tier of the bank's regulatory capital according to the Basel III capital regulatory standards issued by the Central Bank of Jordan, involves a banking consortium of international and Arab financial institutions, led by the European Bank for Reconstruction and Development. It includes the ILX Fund, the OPEC Fund for International Development, the Arab Fund for Economic and Social Development, the Green for Growth Fund (GGF), and the SANAD Fund for Micro, Small, and Medium Enterprises.
This financing aims to support the future strategy of Capital Bank and enhance its efforts in financing green projects and supporting small and medium-sized enterprises, in line with its commitment to achieving sustainable economic development in the Kingdom.
On this occasion, the Chairman of Capital Bank, Bassem Khalil Al-Salem, said: "This joint financing embodies the great confidence the international financial community places in the robustness of the Jordanian economy and its attractive investment environment, a result of the efforts of the Central Bank of Jordan and the government's vision in supporting inclusive and sustainable economic growth in the Kingdom. The importance of this agreement lies in financing projects that will have a sustainable impact by empowering various sectors of small and medium-sized enterprises, enabling more opportunities for youth and women."
On his part, the CEO of Capital Bank, Tamer Ghazaleh, said: "We are proud of our cooperation with several international financial institutions, where this agreement reflects the pioneering status of Capital Bank and its ability to achieve sustainable growth. This loan expresses Capital Bank's vision for sustainability and enhances the bank's capability to expand its operations in financing projects that serve the transition toward a more sustainable and environmentally conscious economy, in light of Jordan's commitments within the Economic Modernization Vision, the Paris Agreement, and other global initiatives. This step confirms our dedication to adopting innovative financing solutions that contribute to supporting the green economy and enabling small and medium-sized enterprises as key drivers for sustainable economic success."
Mark Davis, Regional Director for the European Bank for Reconstruction and Development (EBRD) for the South and Eastern Mediterranean region, said: "This agreement is a clear example of how international financial institutions deepen their cooperation to stimulate economic growth and accelerate green financing. We are proud of our leading role in this alliance, being the first to launch the A/B loan structure in Jordan."
The President of the OPEC Fund, Abdulhamid Alkhalifa, said: "This financing reaffirms the strong partnership between the Fund and Jordan, and our commitment to supporting private sector-driven economic growth. Together with Capital Bank and our partners in this joint financing, we enhance the financial sector's capacity to support green investments and small projects that provide jobs and create long-term economic opportunities."
Sandra Rulider, Chairwoman of the SANAD Fund Board, said: "I am pleased to announce this strategic investment in Capital Bank of Jordan, which represents the beginning of a strong and ambitious partnership. This loan reflects SANAD Fund's solid commitment to Jordan, having invested over $200 million USD in the country since its foundation, supporting small and medium-sized enterprises that are fundamental to economic growth and innovation. Together with Capital Bank, we aim to enhance inclusive financial services enabling entrepreneurs and enhancing the resilience of the small and medium-sized enterprise sector."
Simon Gupta, Chairman of the Green for Growth Fund (GGF), said: "For us, enabling local financial institutions like Capital Bank is crucial for accelerating the transition to a green economy. This investment not only expands the reach of climate finance in Jordan but also enhances the role of the private sector in driving sustainable growth."
His Excellency Fawzi Yusuf Al-Hunaif, Managing Director and Chairman of the Board, stated, "The Arab Fund is proud to partner with Capital Bank of Jordan and prestigious financial institutions to support climate change financing and small and medium enterprises, which are the primary drivers of growth," and added: "The Arab Fund's contribution to the alliance will strategically direct financing to the most needy institutions, as defined by the Central Bank of Jordan for small and medium enterprises."
