The Banking Executive Magazine - December Issue 2022

EBRD EBRD, Bank Al Etihad SUPPORT GROWTH OF SMALL AND WOMEN-LED BUSINESSES IN JORDAN The European Bank for Reconstruc- tion and Development (EBRD) is providing Bank al Etihad (BAE) with a $35 million Basel III compliant subordinated loan to strengthen its lending capacity for businesses, indi- viduals as well as women-led micro, small- and medium-sized enterprises (MSMEs) in Jordan. The financing package consists of up to $25 million to BAE for on-lending to businesses and individuals in Jor- dan, and up to $10 million for on- lending to women-led MSMEs under the EBRD Women in Business pro- gramme in Jordan. The programme will help BAE to adapt its products to better suit women-led MSMEs, strengthen their lending practices and improve mar- keting and product development, ac- cording to a statement from the EBRD. In Jordan, MSMEs account for 98 per cent of all businesses, contributing significantly to economic growth and job creation. Women-led businesses account for 25 per cent of the SME sector in Jordan, yet they are under- financed, the statement said. This new financing to BAE is the first project in the southern and eastern Mediterranean (SEMED) region to in- corporate the EBRD’s Paris alignment methodology in the financial sector. A technical assistance package pro- vided under the EBRD’s Corporate Climate Governance Facility will as- sist BAE in developing a pilot institu- tional transition plan to align its business practices and financial flows with the goals of the Paris Agreement, integrating climate risk considerations, identifying business opportunities and supporting its clients with low carbon products and services, the statement said. Bank al Etihad was incorporated in 1978 and has since grown to be- come one of the leading banking groups in Jordan. It ranks third in Jor- dan in terms of customer deposits and facilities, and fourth in terms of total assets. Since 2012 the EBRD has provided more than 1.9 billion euros through 68 projects in Jordan, 70 per cent of which are in the private sector, in- cluding financial support to the Jor- danian banking sector through MSME loans, subordinated debt and trade finance facilities. the BANKING EXECUTIVE 52 ISSUE 168 DECEMBER 2022