GCFF JORDAN PRIVATE SECTOR GUARANTEE FACILITY

Promoter – Financial Intermediary

ACCEPTABLE BANK(S),BANK AL ETIHAD,CAPITAL BANK OF JORDAN PSC,MICROFUND FOR WOMEN

Location

• Jordan

Description

The facility will provide partial portfolio guarantees to local financial intermediaries (FIs), either banks or microfinance institutions, under the Global Concessional Finance Facility (GCFF) - Private Sector Operations framework. GCFF supports middle income countries impacted by the influx of refugees, in this case Jordan as a pilot country. By providing a partial risk protection to FIs in form of guarantees on underlying debt-financing granted to MSMEs on a portfolio basis, the operation will encourage the intermediaries in lending underserved and vulnerable groups of the Jordanian society (including women, youth and refugees) as well as affected by the COVID-19 crisis.

Objectives

The primary objective is to enhance access to finance for Jordanian micro, small and medium sized enterprises (MSMEs) at better terms and conditions, in particular, through reduced collateral requirements, lower financing costs and longer maturities. The operation will also promote the financial inclusion of refugees and host communities as well as of further underserved segments of the economy.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

USD 30 million (EUR 28 million)

Total cost (Approximate amount)

USD 268 million (EUR 251 million)

Environmental aspects

The selected financial intermediaries will have to take all requisite measures to ensure that the relevant procedures carried out by the final beneficiaries will comply with national legislation and the EIB's Environment and Social Standards.

Procurement

The selected financial intermediaries will have to take all requisite measures to ensure that procurement by the final beneficiaries is undertaken in line with the provisions of the EIB Guide to Procurement.

Status

Signed - 27/03/2023