Jordan Kuwait Bank (JKB), in partnership with the International Finance Corporation (IFC), has launched its second Green Bond to expand sustainable financing in Jordan. The proceeds will support renewable energy, energy efficiency, certified green buildings, blue finance and sustainable transport projects, reinforcing Jordan’s Economic Modernization Vision while accelerating the country’s transition to a low-carbon and climate-resilient economy.
Key Overview
- JKB issues its second Green Bond with IFC investing up to US$100 million.
- Proceeds will finance renewable energy, green buildings and sustainable transport.
- Bond aligns with Jordan’s Green Finance Strategy and ICMA Green Bond Principles.
- IFC provides additional blended finance support for certified green buildings.
- Issuance strengthens Jordan’s sustainable finance market.
Jordan Kuwait Bank Launches Second Green Bond
Jordan Kuwait Bank (JKB), in partnership with the International Finance Corporation (IFC), has announced the issuance of its second Green Bond, reinforcing its leadership in sustainable finance while supporting Jordan’s transition toward a greener and more resilient economy.
The latest issuance builds on Jordan’s first Green Bond, launched by IFC and JKB in 2023, and reflects growing investor confidence in sustainable finance across the Kingdom.
The proceeds will finance projects that deliver long-term environmental, social and economic benefits while supporting Jordan’s national climate and development priorities.
IFC Invests Up to $100 Million
As part of the transaction, the International Finance Corporation, the private-sector investment arm of the World Bank Group, will invest up to $100 million in the Green Bond.
The investment is complemented by blended finance support of up to $690,000 under the IFC-UK Market Accelerator for Green Construction (MAGC) programme. Backed by the United Kingdom’s Department for Energy Security and Net Zero, the initiative encourages financing for certified green buildings and promotes sustainable construction across emerging markets.
Although the coupon rate for the bond was not disclosed, the investment demonstrates continued international confidence in Jordan’s banking sector and sustainable finance market.
Funding Renewable Energy and Green Infrastructure
The Green Bond proceeds will be allocated to projects across several climate-focused sectors, including:
- Renewable energy
- Energy efficiency
- Blue finance
- Certified green buildings
- Sustainable transport
- Climate adaptation and resilience projects
The financing is expected to support investments that reduce greenhouse gas emissions, improve energy efficiency, strengthen climate resilience and promote sustainable economic development.
The current issuance also expands the scope of green financing compared with the inaugural 2023 Green Bond, whose proceeds were primarily directed toward green infrastructure, including water and wastewater management projects.
Supporting Jordan’s Climate Strategy
The issuance aligns with several national and international sustainability frameworks.
These include Jordan’s Economic Modernization Vision, the Central Bank of Jordan’s Green Finance Strategy, Jordan Kuwait Bank’s Green Finance Framework, and the International Capital Market Association’s (ICMA) Green Bond Principles.
Compliance with these frameworks is intended to ensure high standards of transparency, governance, reporting and environmental integrity throughout the life of the bond.
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Leaders Highlight Sustainable Finance Growth
JKB Group Chief Executive Officer Haethum Buttikhi described the issuance as another important milestone in the bank’s sustainable finance journey.
He said the Green Bond will mobilize capital toward projects that generate meaningful environmental and economic benefits while supporting Jordan’s long-term development priorities and strengthening the financial sector’s contribution to sustainable growth.
IFC Regional Industry Director for Financial Institutions Momina Aijazuddin said the partnership continues to raise the standard for sustainable finance in Jordan.
She noted that the second Green Bond will support job creation, strengthen climate resilience and accelerate implementation of Jordan’s Economic Modernization Vision.
Expanding Jordan’s Sustainable Finance Market
Jordan Kuwait Bank has steadily expanded its sustainable finance activities over recent years through responsible banking initiatives and financing solutions that support environmental sustainability.
Working alongside international development institutions such as IFC, the bank aims to increase financing for climate-friendly investments while helping businesses adopt cleaner technologies and more sustainable practices.
The issuance also reflects the broader expansion of green capital markets across the Middle East, where banks are increasingly issuing green bonds to finance renewable energy, energy-efficient infrastructure and climate-resilient development projects.
Outlook
Jordan Kuwait Bank’s second Green Bond reinforces the growing role of sustainable finance in supporting Jordan’s economic transformation and climate ambitions. Backed by IFC’s investment of up to US$100 million and additional blended finance support, the issuance is expected to mobilize greater private capital toward renewable energy, energy-efficient buildings, sustainable transport, blue finance and climate-resilient infrastructure. As demand for green financing continues to grow, the bond is also expected to encourage more financial institutions to develop sustainable investment products aligned with international standards. With Jordan advancing its Green Finance Strategy and Economic Modernization Vision, similar green bond issuances are likely to play an increasingly important role in attracting international investment, strengthening the country’s sustainable finance market, creating green jobs and accelerating the transition to a more resilient, low-carbon economy.
FAQs
1. How much is IFC investing in the Green Bond?
IFC will invest up to US$100 million, with additional blended finance support of up to US$690,000.
2. What projects will the Green Bond finance?
The proceeds will support renewable energy, energy efficiency, certified green buildings, blue finance, sustainable transport and climate resilience projects.
3. Why is this Green Bond important?
It expands sustainable financing in Jordan while supporting the country’s Economic Modernization Vision and transition to a low-carbon economy.
4. How does this bond compare with JKB’s first Green Bond?
It builds on Jordan’s first Green Bond issued in 2023, expanding climate-focused financing while attracting continued support from IFC and international sustainable finance partners.
Sources: Post News, Dealroom, Zawya, Jordan Kuwait Bank
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