EIB Global and Jordan Kuwait Bank join forces to back a green transition in the private sector

• EIB Global and Jordan Kuwait Bank have signed the first Green Transition Facility guarantee in the region to implement such a program, unlocking $45 million in green investments for Jordan’s private sector.
• Jordan Kuwait Bank leads the way as the first implementing partner of the Green Transition Facility in the region.
• The facility combines funding, risk-sharing, technical assistance and financial incentives to empower micro, small and medium-sized enterprises (MSMEs) and mid-caps in climate action.
• A web-based tool has been launched to help financial intermediaries and enterprises quickly assess whether projects meet EIB Global’s green eligibility criteria.

The Green Transition Facility was officially launched in Jordan today, marking a major milestone in the efforts of the European Investment Bank (EIB Global) to expand climate finance across the European Union’s Southern Neighbourhood.

The Green Transition Facility (GTF) is EIB Global’s flagship green finance approach in the Southern Neighbourhood, combining long-term funding, risk-sharing, financial incentives and technical assistance to address the persistent barriers MSMEs face in accessing finance for climate action and environmental sustainability. The facility’s launch is being accompanied by the rollout of the EIB’s Green Eligibility Checker – a web-based tool to help banks and enterprises rapidly assess project eligibility for green finance based on the EU taxonomy – in Jordan.

Jordan Kuwait Bank: pioneering green MSME Finance

Although micro, small, and medium enterprises (MSMEs) represent the largest share of Jordanian businesses and provide the majority of employment opportunities in the private sector, they still face significant barriers in accessing climate finance. The Green Transition Facility addresses these constraints through a comprehensive de-risking and capacity-building strategy, with Jordan Kuwait Bank leading the way as the first implementing partner in the region.

The portfolio guarantee signed by Jordan Kuwait Bank will de-risk up to $45 million in green loans. Projects will also benefit from the preferential terms of an existing EIB Global loan facility supported by an EU guarantee, which will be amended for this purpose and further enhanced by incentive grants and technical assistance, together exceeding $1 million. The facility will enable Jordan Kuwait Bank to extend more favourable terms to MSMEs investing in renewable energy, energy efficiency, water and wastewater, green mobility and circular economy projects.

“At Jordan Kuwait Bank, we see sustainability not only as a responsibility but as an opportunity to empower businesses and communities. This partnership with EIB Global allows us to channel much-needed financing into projects that will strengthen Jordan’s green economy, support our MSMEs and build long-term resilience. We are proud to be the first implementing partner in the region and look forward to setting a model for climate finance that others can follow,” said the CEO of Jordan Kuwait Bank Haethum Buttikhi.

Team Europe approach

The guarantee, financial incentives and technical assistance are being made possible by an €9 million contribution from Germany through the International Climate Initiative (IKI) Trust Fund.

“The Green Transition Facility shows how coordinated financial instruments and technical assistance can effectively overcome market failures and unlock climate investments where they are most needed,” said Guido Kemmerling, chargé d’affaires of the German Embassy to Jordan, representing IKI and the German government. “Germany is proud to support Jordan’s private sector in becoming an engine for sustainable growth.”

Innovative tools and a scalable model for the region

In parallel with the Green Transition Facility, EIB Global is launching the Green Eligibility Checker in Jordan. This free, web-based tool helps financial intermediaries and enterprises quickly assess whether projects meet EIB Global’s green eligibility criteria, supporting project origination, appraisal and reporting.

This open-access platform will strengthen the capacity of financial intermediaries to originate and monitor climate-aligned portfolios. To further support institutions engaging in green finance, EIB Global may provide advisory services to help develop internal climate strategies, improve climate risk disclosures and strengthen institutional capacity.

“The Green Transition Facility and the Green Eligibility Checker are game changers for Jordan’s private sector. By combining risk-sharing, incentives, technical support and simplified eligibility checks, we are empowering MSMEs to invest in sustainable solutions and drive the green transition,” said EIB Vice-President Gelsomina Vigliotti. “This initiative demonstrates the EU’s commitment to empower the private sector as a key driver of climate resilience and green transformation.”

The combination of long-term finance, risk-sharing, incentives and technical assistance addresses both demand- and supply-side constraints, demonstrating a scalable model for green MSME finance in Jordan and beyond that can demonstrate the European Union’s commitment to a just and green transition in the region.

Background information

About EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.

About the EIB Group

The EIB Group, consisting of the European Investment Bank and the European Investment Fund, is the biggest multilateral financial institution in the world and one of the largest providers of finance for climate action. As the bank of the European Union, its shareholders are the EU Member States, and it works in close collaboration with the European Commission. In 2024, global financing from the EIB Group totalled over €88 billion, of which a record of over €50 billion was invested in green finance. The EIB Group’s policy priorities are financing small and medium firms, innovation, digital and human capital, sustainable cities and regions, and sustainable energy and natural resources. Its work extends beyond Europe to over 160 countries.

EIB Global, the EIB’s development arm, provided a total of €8.4 billion during 2024 to help address global challenges and foster growth and opportunity all over the world. EIB Global is part of Team Europe, which means it partners with the European Commission, EU Member States and development finance institutions to deliver on common objectives and maximise the EIB Group’s impact. EIB Global is also a key partner of the European Green Deal, and of the EU’s Global Gateway initiative, under which it aims to support €100 billion of investment by the end of 2027.

About EIB Global support for Jordan’s private sector

In Jordan, the EIB has significantly ramped up its support for MSMEs via the financial sector since launching of its Economic Resilience Initiative in 2016. Loan commitments since 2017 exceed €1 billion, while EIB portfolio guarantees cover an MSME portfolio of over €200 million. The Bank is supporting MSMEs via eight local banks and two microfinance institutions, and projects are expected to sustain over 45 000 jobs across over 800 Jordanian enterprises. The EIB offers a broad range of products, including loans, portfolio guarantees and equity participations, as well as blending products and advisory services. The EIB Group has built up specific infrastructure, expertise and experience related to these products over many years. Learn more about the EIB in Jordan here.

About the Green Transition Facility in Jordan

The EIB carried out a green market scoping study that confirmed sizeable potential for green finance in Jordan, analysed demand and supply-side factors needed to overcome current bottlenecks, and identified specific sectors and technologies that could be targeted. Following the initial design and market pre-testing during 2023, the EIB has now finalised the design of its Green Transition Facility for the EU Southern Neighbourhood region. For Jordan, the Green Transition Facility will be made possible by a contribution of the International Climate Initiative, funded by the German government.

The Green Transition Facility targets financial intermediaries that are interested in integrating climate-related considerations into their activities and increasing the share of inclusive green finance in their portfolio, in partnership with the EIB. Where needed, the EIB may also complement the Green Transition Facility with advisory support for the development of climate-related disclosures and a climate strategy, as well as institutional capacity building.

The Green Transition Facility is an integrated package of financial instruments to support the green transition of MSMEs through financial intermediaries. The facility consists of three main components, which are interconnected and reinforce each other: (i) a Green Transition Loan Facility providing long-term attractive funding; (ii) a partial portfolio guarantee sharing the risk of green MSME exposures; and (iii) technical assistance provided to intermediaries and clients.

Jordan Kuwait Bank

Established in 1976, Jordan Kuwait Bank (JKB) stands as the fifth established national commercial bank in Jordan, playing a pivotal role in the country's banking sector. With more than 60 branches across Jordan and one in Cyprus, JKB has expanded its influence both locally and internationally.

JKB's subsidiaries include Ejara Leasing Company (Jordan), United Financial Investments Co. (Jordan), and Bank of Baghdad (Iraq), with JKB holding 100%, 78.3%, and 53.4% of their capital, respectively. The bank also holds strategic investments in Algeria Gulf Bank, Quds Bank in Palestine,* and Middle East Payment Services in Jordan.

Major shareholders of JKB are Al Rawabi United Holding Co. (Kuwait), a fully owned subsidiary of Kuwait Projects Company Holding (KIPCO), the Social Security Corporation (Jordan), and Odyssey Reinsurance Company (United States), a subsidiary of Fairfax Financial Holdings, owning 50.9%, 21%, and 5.85% of the bank’s capital, respectively.

As a pioneer in Jordan, JKB was the first bank to introduce electronic delivery channels. JKB maintains high-tech infrastructure with widespread branches, ATM and ITM (interactive teller machine) networks. Offering efficient, secure and state-of-the-art e-banking products and services, coupled with a unique customer-centric atmosphere, the bank has solidified its position as a leading client-focused bank in Jordan, living up to its slogan: “More than just a bank.”