The European Bank for Reconstruction and Development (EBRD) is leading a group of international lenders providing up to $135 million to Capital Bank of Jordan, the EBRD said. The subordinated loan will shore up the bank’s capital and help it lend more to small and medium businesses across Jordan. Part of the money will go toward green projects.
This is the first time the EBRD has used an A/B loan structure in Jordan. The EBRD is putting in up to $25 million in A loans and $20 million in B loans through ILX Fund. Five other lenders are joining: the OPEC Fund ($25 million), the Arab Fund for Economic and Social Development ($25 million), the SANAD Fund for MSME ($15 million), and the Green for Growth Fund ($25 million).
The loan follows Basel III rules and will boost Capital Bank’s Tier II capital, letting it finance more micro, small, and medium-sized Jordanian businesses. Some of the financing will support green sub-projects that align with Jordan’s sustainable development plans and the Central Bank’s Green Strategy.
Mark Davis, EBRD Managing Director for the Southern and Eastern Mediterranean, says the deal shows how international banks are working together more to push economic growth and green finance. Tamer Ghazaleh, CEO of Capital Bank, says the agreement backs the bank’s sustainability goals and fits with Jordan’s Economic Modernization Vision and global climate commitments.
Capital Bank is Jordan’s fourth-largest commercial bank, listed on the Amman Stock Exchange with a market cap around $1 billion. Since 2012, the EBRD has invested over €2.2 billion in 82 Jordanian projects—nearly three-quarters of that went to private sector companies, including banks getting help with MSME loans, subordinated debt, and trade finance.
