The Jordan blue bond market reached a major milestone after the European Bank for Reconstruction and Development (EBRD) invested $100 million in the region’s first blue bond issuance. The financing will support sustainable water projects, expand climate finance, and strengthen Jordan’s long-term water security while advancing sustainable finance across the Southern and Eastern Mediterranean (SEMED) region.
Key Overview
- Jordan issued its first blue bond.
- EBRD invested $100 million.
- Funds will support water projects.
- Bond follows global sustainability standards.
- The Housing Bank issued the bond.
- Water security remains a key priority.
- EBRD has invested €2.3 billion in Jordan.
- The project expands sustainable finance.
Jordan Blue Bond Secures $100 Million for Sustainable Water Projects
Jordan has taken a significant step in sustainable finance after issuing the first Jordan blue bond, attracting a $100 million investment from the European Bank for Reconstruction and Development (EBRD). The landmark transaction is the first blue bond not only in Jordan but across the Southern and Eastern Mediterranean (SEMED) region, demonstrating growing investor confidence in financing projects that protect water resources and strengthen climate resilience.
The proceeds will finance critical water infrastructure and environmental projects, helping Jordan address one of the world’s most pressing water scarcity challenges while expanding access to long-term sustainable funding.
EBRD Backs Landmark Blue Bond
The EBRD investment represents another milestone in its long-standing partnership with the Housing Bank and Jordan’s financial sector.
Housing Bank issued the blue bond under its existing Green Bond Framework, with the issuance aligning with internationally recognised sustainability standards, including the International Capital Market Association’s Green Bond Principles and the International Finance Corporation’s Blue Finance Guidelines.
By participating in the transaction, the EBRD aims to deepen Jordan’s sustainable finance market while encouraging additional institutional investment into environmentally focused projects.
The investment also reflects growing global demand for specialised green and blue financing instruments that target climate adaptation and natural resource conservation.
Financing Sustainable Water Projects
The proceeds from the bond will primarily support sustainable water projects designed to improve water management, preserve ecosystems and expand critical infrastructure.
Jordan faces one of the highest levels of water stress globally, making investment in efficient water systems essential for long-term economic development and environmental sustainability.
According to the Housing Bank, the financing will help increase the availability of long-term capital for environmentally sustainable projects, an area where funding has historically been limited within the local financial market.
The projects are expected to strengthen water conservation, improve infrastructure efficiency and enhance resilience against climate-related challenges.
Water Security Remains a National Priority
Water security has become one of Jordan’s most important development priorities as population growth, climate change and limited freshwater resources continue to increase pressure on existing supplies.
Housing Bank’s Chief Executive Officer, Ammar Al-Safadi, said the blue bond would serve as a dedicated financing instrument supporting projects that protect water resources, preserve ecosystems and develop essential infrastructure.
He added that the initiative would contribute to Jordan’s long-term water security strategy while positioning the country as a regional leader in sustainable finance.
The transaction builds on efforts launched in 2023, when Housing Bank introduced a new green financing programme in partnership with the EBRD, the European Union and the Green Climate Fund.
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Strong International Support
The latest investment marks the fourth collaboration between the EBRD and Housing Bank.
Previous partnerships have focused on supporting small and medium-sized enterprises, expanding green finance initiatives and facilitating international trade.
Since beginning operations in Jordan in 2012, the EBRD has invested more than €2.3 billion across 86 projects, supporting financial institutions, private sector development and sustainable economic growth.
According to Mike Taylor, EBRD Director for Financial Institutions, the blue bond represents a significant step forward for sustainable finance in Jordan and demonstrates how innovative capital market instruments can mobilise investment for environmental priorities.
Housing Bank’s Regional Importance
Housing Bank occupies a prominent position within Jordan’s banking sector and benefits from a diverse shareholder base spanning several Middle Eastern countries.
The publicly listed bank is majority-owned by Qatar National Bank, which holds approximately 38.57%, followed by Kuwait’s Investment Authority with 18.6%, the Libyan Foreign Bank with 17.2%, and Jordan’s Social Security Corporation with just over 15%.
Its regional ownership structure enhances investor confidence while broadening access to international capital markets for future sustainable financing initiatives.
Supporting Jordan’s Largest Water Infrastructure Project
The blue bond complements Jordan’s broader investment programme in water infrastructure, including the country’s flagship National Water Carrier Project.
The large-scale project is expected to deliver approximately 300 million cubic metres of potable water annually to Aqaba and Amman, supplying drinking water to roughly 4 million people.
As climate pressures intensify across the Middle East, financing mechanisms such as blue bonds are becoming increasingly important for supporting infrastructure capable of improving water availability and strengthening resilience against prolonged droughts.
Outlook for Jordan Blue Bond Market
The successful Jordan blue bond issuance establishes an important benchmark for sustainable finance across the Middle East and North Africa.
With growing investor interest in green and blue bonds, Jordan has demonstrated that capital markets can play an important role in financing environmental priorities while attracting international institutional investors.
As governments and financial institutions continue seeking innovative funding solutions for climate adaptation and water infrastructure, Jordan’s inaugural blue bond could provide a blueprint for similar issues throughout the region.
FAQs
What is the Jordan blue bond?
The Jordan blue bond is the first blue bond issued in Jordan and the wider Southern and Eastern Mediterranean region. It was issued by Housing Bank under its Green Bond Framework and attracted a $100 million investment from the European Bank for Reconstruction and Development (EBRD). The proceeds are dedicated to financing sustainable water infrastructure and environmental projects.
How will the blue bond improve water security in Jordan?
The funds raised through the blue bond will support projects that improve water management systems, develop critical infrastructure, preserve ecosystems and strengthen climate resilience. These investments are intended to address Jordan’s severe water scarcity challenges while improving long-term access to clean and reliable water supplies.
Why did the EBRD invest in the Jordan blue bond?
The EBRD invested $100 million to promote sustainable finance and expand access to long-term funding for environmentally important projects. The investment also supports Jordan’s transition to a greener economy while encouraging wider adoption of innovative financing instruments across the region.
Why are blue bonds becoming more important?
Blue bonds provide dedicated financing for projects related to oceans, rivers, lakes and water infrastructure. As water scarcity and climate change become increasingly significant global challenges, governments and financial institutions are using blue bonds to mobilise private capital for sustainable water management, environmental protection and climate adaptation initiatives.
Sources: MSN, Funds for NGOs, Netzero Investor, Daily Business
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