Jordan Kuwait Bank has launched its second Jordan green bond in partnership with the International Finance Corporation (IFC), securing an investment of up to $100 million to finance environmentally sustainable projects. The issuance strengthens sustainable finance in Jordan by supporting certified green buildings, renewable energy financing, and climate-resilient investments while advancing the country’s Economic Modernization Vision.
Key Overview
The second Jordan green bond reinforces Jordan’s growing commitment to ESG investing and climate finance. Backed by IFC and supported through a UK-funded blended finance programme, the issuance aims to mobilize private capital toward environmentally beneficial projects while strengthening the country’s capital markets and sustainable development agenda.
Jordan Kuwait Bank Launches Second Green Bond
Jordan Kuwait Bank has announced the issuance of its second Jordan green bond, marking another milestone in the country’s sustainable finance market.
The issuance builds on the success of Jordan’s inaugural green bond and further strengthens the bank’s long-term commitment to financing environmentally responsible investments. Through the transaction, the bank aims to mobilize capital exclusively for projects that generate measurable environmental benefits while delivering financial returns to investors.
The issuance also demonstrates the growing role of Jordan’s financial sector in supporting sustainable economic growth and climate resilience.
IFC Invests Up to $100 Million
The International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, is investing up to $100 million in the green bond issuance.
In addition to its cornerstone investment, IFC will provide blended finance support of up to $690,000 through a performance-based incentive programme designed to accelerate sustainable construction and green financing across emerging markets.
The investment represents one of IFC’s latest efforts to expand sustainable finance across the Middle East while encouraging greater private-sector participation in environmentally focused infrastructure and development projects.
Green Bonds Support Sustainable Development
Green bonds are fixed-income securities issued specifically to raise capital for projects that deliver positive environmental outcomes.
Unlike conventional bonds, proceeds from green bonds are earmarked exclusively for eligible projects such as renewable energy, energy-efficient buildings, sustainable transport, clean water infrastructure and other climate-related investments.
For investors, green bonds combine traditional fixed-income returns with opportunities to support environmental sustainability and responsible investment objectives.
The latest issuance by Jordan Kuwait Bank will channel financing toward projects that contribute to Jordan’s transition to a lower-carbon and more resilient economy.
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UK-Backed Programme Supports Green Construction
IFC’s investment is further supported through the IFC-UK Market Accelerator for Green Construction (MAGC) programme.
The blended finance initiative is funded by the United Kingdom through the Department for Energy Security and Net Zero and is designed to encourage lending for certified green buildings across emerging economies.
The programme uses performance-based incentives to reduce financing barriers for sustainable construction projects while encouraging financial institutions to expand lending for environmentally certified developments.
By combining private capital with concessional support, the initiative aims to accelerate the adoption of sustainable building practices and improve long-term climate resilience.
Supporting Jordan’s Economic Modernization Vision
Jordan Kuwait Bank said the second green bond aligns closely with Jordan’s Economic Modernization Vision.
According to Group Chief Executive Officer Haethum Buttikhi, the issuance strengthens the bank’s commitment to supporting projects that deliver both environmental and economic benefits while reinforcing the financial sector’s contribution to sustainable national development.
The proceeds are expected to support investments that improve environmental performance, create employment opportunities, and strengthen Jordan’s long-term economic resilience.
The issuance also demonstrates how financial institutions are increasingly integrating sustainability into their core business strategies.
IFC Highlights Sustainable Finance Progress
IFC described the latest issuance as another important step in developing Jordan’s sustainable finance ecosystem.
Regional Industry Director for Financial Institutions Momina Aijazuddin noted that the partnership with Jordan Kuwait Bank previously resulted in the country’s first green bond and that the second issuance continues expanding financing for sustainable development.
IFC believes increased private-sector financing will play an important role in supporting climate adaptation, strengthening economic resilience, and encouraging investment in environmentally sustainable infrastructure across Jordan.
Jordan’s Green Finance Market Continues to Expand
The second Jordan green bond reflects broader momentum in Jordan’s capital markets, where sustainable investment products are becoming increasingly important.
Institutional investors globally continue to increase allocations toward ESG investing, creating growing demand for high-quality green bond issuances from both developed and emerging markets.
For Jordan, expanding access to sustainable finance provides an opportunity to attract international investment while supporting renewable energy, green construction and other environmentally focused sectors that contribute to long-term economic development.
As environmental regulations and investor expectations continue evolving, green bonds are expected to play an increasingly significant role in financing sustainable infrastructure throughout the region.
Jordan Kuwait Bank’s Position in the Market
Established in 1976, Jordan Kuwait Bank is one of the country’s leading financial institutions, with total assets exceeding JOD 5.46 billion (approximately US$7.7 billion).
The bank has increasingly positioned itself as a leader in sustainable banking by integrating environmental considerations into its financing strategy while supporting national development priorities.
Its second green bond further strengthens its role in expanding sustainable lending opportunities across Jordan’s financial sector.
Outlook for Sustainable Finance in Jordan
The successful issuance demonstrates growing confidence in Jordan’s sustainable finance market and highlights increasing collaboration between development finance institutions and commercial banks.
With continued support from organizations such as IFC, green bond issuances are expected to mobilize additional private capital for renewable energy, green buildings and climate-related infrastructure.
As investor demand for sustainable assets continues to rise globally, Jordan’s expanding green finance market could play an increasingly important role in supporting the country’s environmental objectives while strengthening long-term economic growth.
FAQs
What is the Jordan green bond?
The Jordan green bond is a debt instrument issued by Jordan Kuwait Bank to raise funds exclusively for environmentally sustainable projects such as renewable energy, green buildings and climate-related investments.
How much is IFC investing?
The International Finance Corporation (IFC) is investing up to $100 million in Jordan Kuwait Bank’s second green bond issuance and providing additional blended finance support of up to $690,000.
What projects will the bond finance?
The proceeds will finance projects that generate environmental benefits, including certified green buildings, renewable energy financing, sustainable construction and other initiatives supporting Jordan’s climate and development goals.
Why is this issuance important?
The second Jordan green bond strengthens sustainable finance in Jordan, expands opportunities for ESG investing, supports the country’s Economic Modernization Vision, and reinforces the role of capital markets in financing sustainable development.
Sources: PR Newswire, Funds Global Mena, Trading View, Zawya, App Dealroom
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