BAKU, Azerbaijan, April 8. The European Bank for Reconstruction and Development (EBRD) is providing a $30 million (27.3 million euros) Basel III-compliant subordinated loan to Bank al Etihad in Jordan, Trend reports.
The funding aims to strengthen the bank’s capital base and expand its capacity in sustainable and inclusive finance.
Sixty percent of the loan will be allocated to green financing, supporting projects in renewable energy and industrial energy efficiency. The remaining 40 percent will go toward social financing, with a focus on micro, small, and medium-sized enterprises (MSMEs), particularly those led by women and youth or operating in underserved areas.
The loan is intended to improve access to finance in Jordan, where availability remains limited for many MSME segments. It also supports the country’s transition to a low-carbon economy in line with national climate goals under the Paris Agreement.
This is the third EBRD facility provided to Bank al Etihad, which was the first Jordanian bank to adopt the EBRD’s Paris alignment methodology in 2022. The bank also participates in the EBRD’s Green Economy Financing Facility.
Since 2012, the EBRD has invested over 2.3 billion euros in Jordan across 75 projects, with a majority directed to the private sector.