ImpactAlpha, March 14 — Jordan Kuwait Bank issued Jordan’s first green bond to finance clean energy projects, low-carbon transportation, energy efficient real estate and sustainably-managed water resources and waste.
The World Bank estimates Jordan needs $9.5 billion in investments to advance a low-carbon economy, and more than 60% of that number will need to come from private investors.
International Finance Corp. will allocate $36 million from its own account, as well as $10 million from a blended finance co-investment with Global Affairs Canada and $4 million from a facility backed by the Netherlands’ Ministry of Foreign Affairs to the bond.
“We hope this green bond will not only promote climate-smart, sustainable projects in Jordan, but also set the standard for green bonds in the market and encourage others to follow suit,” said IFC’s Khawaja Aftab Ahmed.
The bond will comply with the International Capital Market Association’s green bond principles for reporting on the use of proceeds and their impact.