Jordan Kuwait Bank has issued its second green bond, with the International Finance Corporation committing up to $100m to the transaction as the lender expands financing for environmentally focused projects in Jordan.
The issuance follows the country’s first green bond in 2023 and will direct proceeds towards renewable energy, energy-efficiency projects, sustainable transport, certified green buildings and blue-finance initiatives.
IFC’s investment is supported by a performance-based incentive through the IFC-UK Market Accelerator for Green Construction programme, which is backed by the UK Department for Energy Security and Net Zero. The programme is intended to encourage financing for certified green buildings and promote more sustainable construction practices in emerging markets.
JKB said the bond is aligned with Jordan’s Economic Modernization Vision, the Central Bank of Jordan’s Green Finance Strategy and the International Capital Market Association’s Green Bond Principles. It will also follow the bank’s own Green Finance Framework.
Haethum Buttikhi, group chief executive of Jordan Kuwait Bank, said the transaction would mobilise capital for projects with environmental and economic benefits.
“The issuance of our second Green Bond marks another important milestone in Jordan Kuwait Bank’s sustainable finance journey,” he said. “Building on the success of Jordan’s first Green Bond, this issuance will mobilize capital towards projects that generate meaningful environmental and economic impact.”
Momina Aijazuddin, IFC regional industry director for financial institutions, said the deal represented a further step in the development of Jordan’s sustainable-finance market.
“Our partnership with Jordan Kuwait Bank continues to raise the bar for sustainable finance in Jordan, launching the country’s first green bond,” she said. “This second green bond marks the next chapter, supporting job creation, strengthen resilience, and accelerate sustainable growth in support of Jordan’s Economic Modernization Vision.”
JKB said it would continue to work with development-finance institutions and other international partners to expand responsible banking and environmentally sustainable lending.
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