(MENAFN- Asdaa BCW) • The agreement with the European Bank for Reconstruction and Development (EBRD) aims to develop a comprehensive strategy that addresses climate change, environmental and social aspects, as well as governance. This strategy will contribute to the sustainability goals of all the bank's operations and activities, aligning with the Central Bank of Jordan's recently issued strategy on green financing.
• The agreement includes providing a loan of 15 million US dollars to Housing Bank in cooperation with the European Union (EU) and the Green Climate Fund (GCF) to be utilized to finance Green Projects.
In alignment with global trends and the Central Bank of Jordan directives regarding environmental, social, and governance (ESG) risk management, Housing Bank has recently signed a $15 million loan agreement with EBRD, the EU, and the GCF. This agreement aims to assist the bank in developing a comprehensive strategy for ESG risk management that adheres to international best practices. Additionally, it will enable the bank to evaluate the viability of various green financing projects available to its clients, positioning Housing Bank as a leading institution in the Jordanian banking sector in this field.
The agreement was signed by Ammar Al Safadi, the CEO of Housing Bank, Gretchen Biery, the Director of the Eastern Mediterranean region of EBRD, and in the presence of Pierre-Christophe Chatzisavas, the Ambassador of the European Union to Jordan.
The agreement will empower Housing Bank to offer green financing to Jordan's SMEs. This will support the MSMES to investment in projects focused on environmental sustainability, aiming to mitigate the impact of climate change. Additionally, the agreement will enable the bank to develop new products that align with its strategic objectives towards a sustainable future.
In response to this agreement, Ammar Al-Safadi, CEO of the Housing Bank, commented: “In line with the Housing Bank’s positive role towards stimulating economic growth, the Bank continues to expand its network of internal and external partnerships and is pleased to announce its partnership with the EBRD to support Green investment in Jordan. We are the first Bank in Jordan to sign off with the EBRD to launch a comprehensive and integrated strategy aimed at developing the Bank’s governance, environmental and social responsibility policies, in a manner that contributes to encouraging SMEs to invest in projects that support the environment, and in line with our strategic objectives to adopt the best international practices and standards in this regard.”
On her side, Biery commented, "The European Bank for Reconstruction and Development is pleased to sign this financing agreement with Housing Bank. This partnership aims to give customers access to environmentally friendly technologies and services. We are proud of our ongoing collaboration with the European Union and the Green Climate Fund through the Green Finance Program. This initiative is expected to reduce approximately 11,000 tons of annual carbon dioxide emissions in Jordan over the next fifteen years. We are committed to achieving an even greater impact through our program. We aim to build an economy in Jordan that relies more on environmentally friendly projects and promotes sustainability concepts in collaboration with the private sector in Jordan.
According to comments from Chatzisavas, The European Union Ambassador in Jordan, “the European Union is pleased with the positive direction taken by commercial banks, like Housing Bank, in their support for development partnerships, addressing climate change, and embracing advanced technologies and digital transformation. The private commercial sector, particularly SMEs, plays a crucial role in the collective efforts to achieve the objectives of the Paris Agreement.”
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