Jordan Kuwait Bank Issues USD 100m Green Bond with IFC Backing

Jordan Kuwait Bank (JKB) has issued its second Green Bond, with the International Finance Corporation (IFC) committing up to USD 100 million as an anchor investor, according to The Fintech Times.

The Amman-based bank, which has total assets of about USD 7.70 billion, first entered the green bond market in 2023. The latest issuance expands the range of eligible assets that can be financed through the bond.

Proceeds from the issuance will be directed towards renewable energy, energy efficiency, blue finance, certified green buildings and sustainable transport projects.

The bond is aligned with the International Capital Market Association’s Green Bond Principles and JKB’s Green Finance Framework, which require disclosures and reporting on the use of proceeds.

A performance-based incentive has also been attached to the transaction through the IFC-UK Market Accelerator for Green Construction (MAGC), a blended finance programme funded by the UK Department for Energy Security and Net Zero. The programme is aimed at encouraging lending for certified green buildings in emerging markets.

Haethum Buttikhi, group chief executive officer of Jordan Kuwait Bank, said that the issuance would mobilise capital for projects with environmental and economic impact while supporting Jordan’s Economic Modernisation Vision.

Momina Aijazuddin, IFC’s regional industry director for financial institutions, said that the partnership would support job creation and sustainable growth in line with Jordan’s national economic strategy.

The transaction also aligns with the Central Bank of Jordan’s Green Finance Strategy, which provides a framework for sustainable lending by financial institutions.