Luxembourg and Amman, December 19, 2019 – The Green for Growth Fund has provided the first investment in Jordan, and the first subordinated debt in the region to the value of EUR 10 million to Cairo Amman Bank (CAB) for green financing. This investment will primarily be used for energy efficiency (EE) financing, particularly with industrial equipment and transportation, which is vital given the country’s limited energy resources. In addition, part of the loan will be utilized for renewable energy (RE) investments to support CAB financing local solar projects.
CAB is the 3rd largest retail bank in Jordan and is well known in the region with experience in EE/RE lending within a branch network that covers Jordan, the Palestinian Territories, and Bahrain. CAB intends to on-lend the GGF financing for measures that support renewable energy and reductions in power use throughout the country. Jordan imports almost all of its energy and fuel requirements and therefore the investment is primed to benefit the country with the investment expected to save approximately 38,000 MWh of energy and reduce 8,000 metric tons of CO2 per year.
GGF Chairman Olaf Zymelka stated: “We are honored to have established this partnership with CAB and expand our green financing activities to Jordan. This investment will contribute to the development of renewable energy and energy efficiency, not only in Jordan, but in the MENA region as well, ensuring GGF has a positive environmental impact in the respective countries.”
CEO of Cairo Amman Bank Mr. Kamal Al Bakri said: “This agreement will allow us at Cairo Amman Bank to finance renewable energy projects which will not only reduce high operational and consumer costs in Jordan, it will open new investment horizons that will boost the economy of our country.”
ABOUT THE GGF
The GGF helps reduce the use of energy and resources and prevent CO2 emissions. It pursues this goal by providing dedicated financing to businesses and households across 19 markets in the Southeast Europe Region including Turkey, the European Neighborhood Region-East, and the Middle East and North Africa. By using a blended finance structure and working through local partner institutions, the GGF is able to raise awareness and implement green finance activities. The fund combines its financial offering with tailored technical assistance that helps build capacity and which brings energy efficiency measures, renewable energy, and improved resource management toward the mainstream. In addition, by managing the environmental and social (E&S) risks associated with its investments, the fund sets standards for its partners and supports them to enhance their own E&S management systems, as required.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB). The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
For more information see www.ggf.lu and follow us on Twitter @GreenGrowthFund
Since its establishment as a Jordanian public company in 1960, CAB has been keen on employing its strong capital and its Six-decade, well-founded experience to play a distinguished leading role in promoting the national economy through providing a distinct and inclusive range of services and successful banking solutions that fulfill the various needs of its customers.
CAB’s pioneer services added a new dimension to the society’s projects by financing the development projects as well as small, medium and micro projects that shore up the Jordanian economy. Being keen on making it easier to serve its customers, CAB established a large network of automatic telling machines installed at various areas in Jordan, Palestine and Bahrain. CAB takes pride in being the first bank in the world to introduce the iris print as a means of identification allowing customers to access their bank accounts and doing away with the ATM cards and the pass (secret) number. Thus, the system recognizes the customer and allows him to access his account and complete his banking transaction either at the service counter or at the ATM at the branches. This is done in order to make things easier for the customers and provide them with sufficient protection and security, as CAB believes in leadership in the use of modern technology in the banking sector.
For more information, please visit: http://www.cab.jo
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