The Banking Executive Magazine - April 2025

EBRD, EU and GCF EBRD, EU and GCF ACCELERATE PRIVATE-SECTOR GREEN FINANCING IN JORDAN EBRD, EU and GCF accelerate pri- vate-sector green financing in Jordan The European Bank for Reconstruc- tion and Development (EBRD) is pro- viding Capital Leasing with a US$ 5 million loan under the Green Econ- omy Financing Facility (GEFF). This includes US$ 1.25 million of co-fi- nancing from the Green Climate Fund (GCF). The loan to Capital Leasing marks the first to be signed in Jordan to a leasing company under the GEFF re- gional programme in Jordan, and the seventh GEFF facility to be signed in the country overall. The facility will mean easier access to finance for Jordanian micro, small and medium-sized enterprises (MSMEs) investing in climate mitiga- tion and adaptation technologies – for example, individuals and private companies working in energy serv- ices, or as technology suppliers, pro- ducers and service providers. The European Union (EU) is provid- ing a grant of up to € 560,000 to ac- celerate climate adaptation and mitigation technologies and services by local MSMEs and households. This grant will provide eligible sub- borrowers with access to dedicated green finance tools, equipment and solutions as well as awareness raising to encourage the sub-borrowers to prioritise greener technologies within their businesses. Capital Leasing will also benefit from a technical cooperation package funded by the EBRD, EU and GCF that will go towards implementation and monitoring of the facility. The el- igible sub-borrowers and Capital Leasing will have the chance to take part in training on climate change mitigation, on-lending and adapta- tion technologies among MSMEs and retail clients. The signing ceremony was held dur- ing the EBRD’s Annual Meeting in London and was signed by the EBRD’s Head of Financial Institu- tions, Francis Malige, and Chairman of Capital Leasing, Tamer Ghazaleh. “Climate action requires collabora- tion and innovation,” explained Francis Malige. “It also requires pa- tient, relentless focus, one invest- ment at a time. Through this facility with Capital Leasing, and with the unwavering support of the EU and the GCF, we are empowering Jordan- ian entrepreneurs and small busi- nesses to lead the way in adopting climate-smart technologies." Tamer Ghazaleh commented: “We are honoured to partner with the EBRD, the EU and the GCF on this milestone initiative. This facility will enable us to extend green financing to a wider base of businesses and in- dividuals across Jordan, supporting innovation and sustainability in key sectors. At Capital Leasing we are committed to playing an active role in driving the country’s transition to a greener and more resilient econ- omy.” Henrike Trautman, European Com- mission Director for the Middle East said: “This new partnership is a tan- gible example of how the European Union is translating its climate ambi- tions into action — by enabling local businesses and households in Jordan to access affordable green financing. With this support, we are not only fostering a more sustainable and re- silient private sector but also helping Jordan advance its green transition in a way that benefits communities and protects the environment.” Capital Leasing is fully owned by Capital Bank of Jordan and spe- cialises in providing financial leasing services to retail, corporate and SME clients. It offers financing across var- ious sectors and industries for assets such as passenger and commercial vehicles, equipment and plant ma- chinery, and real estate. Since 2012 the EBRD has provided more than € 2.3 billion through 75 projects in Jordan, of which 70 per cent are in the private sector, includ- ing financial support to the Jordanian banking sector through MSME loans, subordinated debt and trade finance facilities. ISSUE 196 APRIL 2025 the BANKING EXECUTIVE 23