Jordan Kuwait Bank issues its second Green Bond in partnership with IFC to advance sustainable finance in Jordan

Jordan Kuwait Bank issues its second Green Bond in partnership with IFC to advance sustainable finance in Jordan

Jordan Kuwait Bank (JKB), in partnership with the International Finance Corporation (IFC), a member of the World Bank Group, has announced the issuance of its second Green Bond, reinforcing its leadership in sustainable finance and reaffirming its commitment to supporting Jordan's transition towards a more resilient and sustainable economy.

Building on the successful issuance of Jordan's first Green Bond in 2023, this second issuance marks another important milestone in the Bank's sustainability journey and reflects the growing momentum of sustainable finance in the Kingdom. The proceeds of the bond will be allocated to finance projects across renewable energy, energy efficiency, blue finance, certified green buildings, and sustainable transport, supporting investments that deliver long-term environmental, social, and economic impact.

The issuance is fully aligned with Jordan's Economic Modernization Vision, the Central Bank of Jordan's Green Finance Strategy, and the Kingdom's broader sustainability objectives. It also complies with the International Capital Market Association's (ICMA) Green Bond Principles and Jordan Kuwait Bank's Green Finance Framework, ensuring the highest standards of transparency, governance, and disclosure.

As part of this transaction, IFC is investing up to USD 100 million in the Bank's Green Bond issuance. The investment is further supported through a performance-based incentive under the IFC-UK Market Accelerator for Green Construction (MAGC)- a blended finance program supported by the United Kingdom, acting through the Department for Energy Security and Net Zero- which aims to encourage financing for certified green buildings and accelerate sustainable construction practices across emerging markets.

This milestone reflects the continued confidence of leading international financial institutions in Jordan's banking sector and highlights Jordan Kuwait Bank's role in developing innovative financing solutions that contribute to sustainable economic growth while creating positive environmental and social impact.

On this occasion, Haethum Buttikhi, Group Chief Executive Officer of Jordan Kuwait Bank, said "The issuance of our second Green Bond marks another important milestone in Jordan Kuwait Bank's sustainable finance journey and reinforces our long-standing commitment to supporting Jordan's transition towards a more resilient and sustainable economy. Building on the success of Jordan's first Green Bond, this issuance will mobilize capital towards projects that generate meaningful environmental and economic impact, while supporting the Kingdom's Economic Modernization Vision and strengthening the role of the financial sector in advancing sustainable development”.

"Our partnership with Jordan Kuwait Bank continues to raise the bar for sustainable finance in Jordan, launching the country's first green bond,” IFC’s Regional Industry Director for Financial Institutions, Momina Aijazuddin. "This second green bond marks the next chapter, supporting job creation, strengthen resilience, and accelerate sustainable growth in support of Jordan's Economic Modernization Vision.”

The second Green Bond builds on Jordan Kuwait Bank's long-standing commitment to integrating sustainability into its operations and financing activities. Over the years, the Bank has introduced a range of initiatives aimed at supporting responsible banking practices, financing environmentally sustainable projects, and contributing to the development of Jordan's sustainable finance ecosystem.

Through continued collaboration with international development partners and the introduction of innovative financial solutions, Jordan Kuwait Bank remains committed to creating long-term value for its customers, shareholders, communities, and the environment, while supporting Jordan's national priorities for sustainable and inclusive economic growth.