Jordan Kuwait Bank issues first green bond in Jordan
Jordan Kuwait Bank (JKB) has issued the country's first green bond, backed by the International Finance Corporation (IFC), representing a significant step towards promoting sustainable financing in Jordan.
Jordan Kuwait Bank (JKB) recently made history by issuing Jordan's first-ever green bond, with support from the International Finance Corporation (IFC). Although the deal was relatively small, it is an essential step for the country in terms of green financing.
The issuance of the green bond is a significant achievement for Jordan, as the country faces numerous economic and environmental challenges. With the help of the IFC, the JKB raised $39 million through the issuance of the bond. The funds raised will be used to finance renewable energy projects, green buildings, and other sustainable development initiatives.
The bond is backed by the IFC, a member of the World Bank Group that focuses on private sector investment in developing countries. The IFC is one of the largest investors in Jordan, with a portfolio of over $1 billion in the country. The bank's support was critical in making the green bond issuance possible, as it provided technical assistance and helped develop the bond's framework.
The JKB green bond was issued in line with the guidelines of the Green Bond Principles, a set of standards for green bond issuers developed by the International Capital Market Association. These principles ensure that the funds raised through green bonds are used for environmentally beneficial projects, and that the issuers provide transparency and accountability regarding the use of the proceeds.
The issuance of the green bond is a significant milestone for Jordan's green finance market, as it demonstrates the country's potential to become a leader in sustainable finance in the region. It is expected that the issuance of the bond will inspire other financial institutions in Jordan to consider similar offerings.
In addition to the green bond, the Central Bank of Jordan has taken several other measures to promote sustainable finance in the country. In 2019, the bank launched a national strategy for green finance, which aims to increase investment in environmentally sustainable projects and encourage the development of a green finance ecosystem in Jordan.
The strategy includes several initiatives, such as the establishment of a green finance department within the Central Bank of Jordan and the introduction of green finance regulations for banks and other financial institutions. The bank has also been working to increase public awareness of green finance and its potential to drive sustainable development in the country.
Jordan's green finance market is still in its early stages, but the issuance of the JKB green bond is significant. With the support of the IFC and the Central Bank of Jordan, the country has the potential to become an important player in the region, driving investment in environmentally beneficial projects and promoting sustainable development.