July 21, 2024

Housing Finance Development

It's Your Housing Finance Development

EBRD, EU, and GCF Collaborate to Encourage Sustainable Investments in Jordan

The European Bank for Reconstruction and Development (EBRD) is actively promoting green investments in Jordan through its Green Economy Financing Facility (GEFF) by granting a $15 million (€13.8 million) loan to the Housing Bank (HBTF). This loan, complemented by $3.75 million (€3.4 million) from the Green Climate Fund (GCF), up to €1.69 million in incentive grants from the European Union (EU), and technical support from EBRD, EU, and GCF, aims to facilitate access to funds for the private sector and local micro, small, and medium-sized enterprises (MSMEs). The objective is to bolster investments in climate change mitigation and adaptation technologies and services.

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Beyond financial assistance, this funding will empower the HBTF in capacity building, conducting awareness campaigns about climate-friendly technologies among MSMEs, and offering cash-back incentives for successful implementation of eligible projects. Moreover, a comprehensive technical cooperation package will facilitate project preparation, execution, and monitoring. Additionally, HBTF staff will receive training in gender-responsive green finance to address gender-specific obstacles in supply and demand.

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Under the EBRD’s Corporate Climate Governance Facility, another technical assistance package will aid HBTF in developing an environmental, social, and governance (ESG) framework aligned with international standards. This initiative aligns with the Paris Agreement’s goals and serves as a model for ESG integration within the southern and eastern Mediterranean (SEMED) region.

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The loan agreement, signed by Gretchen Biery, EBRD’s Director for the eastern Mediterranean region, and Ammar Safadi, CEO of HBTF, signifies a collaborative effort to enhance clients’ access to climate-friendly technologies and services. Gretchen Biery emphasized the commitment to fostering a greener, sustainable economy in Jordan through impactful private sector engagement.

Pierre-Christophe Chatzisavas, EU Ambassador to Jordan, commended the involvement of commercial banks like HBTF in supporting development cooperation and climate action, highlighting the crucial role of high-performance technologies and digitalization, especially for MSMEs, in achieving the Paris Agreement’s objectives.

Ammar Safadi, CEO of the Housing Bank, underscored the bank’s dedication to expanding partnerships and promoting green investments, emphasizing their strategy to adopt international best practices and standards for environmental and social responsibility.

Established in 1973, HBTF stands as the second-largest bank in Jordan by total assets, catering to various sectors through its extensive network of branches in Jordan and abroad. Over the years, EBRD has shown significant support to Jordan, allocating over €1.9 billion across 70 projects, with 71% directed to the private sector, particularly aiding the Jordanian banking sector through MSME loans, subordinated debt, and trade finance facilities since 2012.

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