Jordan Daily - Jordan Kuwait Bank (JKB) has launched its second green bond, with the International Finance Corporation (IFC) committing to invest up to $100 million, as the lender expands financing for environmentally sustainable projects and supports Jordan's transition to a lower-carbon economy.
The issuance follows Jordan's first green bond, launched by JKB in 2023, and underscores growing interest in sustainable finance in the kingdom.
What is the green bond?
A green bond is a debt instrument whose proceeds are earmarked exclusively for projects that deliver environmental benefits. Investors receive fixed-income returns, while the issuer commits to using the funds for eligible green investments.
JKB said proceeds from the latest issuance will finance projects in:
* Renewable energy.
* Energy efficiency.
* Blue finance, including sustainable water-related investments.
* Certified green buildings.
* Sustainable transport.
The bank said the investments are intended to generate long-term environmental, social and economic benefits.
Who is investing?
The IFC, a member of the World Bank Group, will invest up to $100 million in the bond.
The investment is supported by a performance-based incentive under the IFC-UK Market Accelerator for Green Construction (MAGC), a blended finance programme backed by the United Kingdom's Department for Energy Security and Net Zero.
The programme aims to encourage financing for certified green buildings and promote sustainable construction practices in emerging markets.
How does the bond fit into Jordan's policies?
JKB said the issuance aligns with:
* Jordan's Economic Modernization Vision.
* The Central Bank of Jordan's Green Finance Strategy.
* The country's broader sustainability objectives.
The bank added that the bond complies with the International Capital Market Association's (ICMA) Green Bond Principles and its own Green Finance Framework, which set standards for the use of proceeds, governance and disclosure.
Why does it matter?
The transaction represents another step in the development of Jordan's sustainable finance market and reflects continued support from international development institutions for the country's banking sector.
Green bonds have become an increasingly important source of funding for climate-related investments, helping channel private capital into projects aimed at reducing emissions, improving energy efficiency and strengthening environmental resilience.
For JKB, the issuance expands its sustainable finance portfolio while supporting investments linked to Jordan's economic modernisation agenda.
What the officials said
JKB Group Chief Executive Officer Haethum Buttikhi said the second green bond builds on the bank's earlier issuance and will help mobilise capital for projects with environmental and economic benefits while supporting Jordan's transition to a more resilient economy.
IFC Regional Industry Director for Financial Institutions Momina Aijazuddin said the new bond builds on the partnership that produced Jordan's first green bond and will help support job creation, strengthen resilience and accelerate sustainable growth in line with Jordan's Economic Modernization Vision.
What's next?
JKB said it will continue working with international development partners to expand sustainable financing and support responsible banking practices, while directing capital toward projects that contribute to Jordan's environmental and economic development objectives.
