Jordan Kuwait Bank issues $100m Green Bond with IFC backing

Editorial Calendar World-Region-Country Middle East & Africa Jordan Kuwait Bank issues $100m Green Bond with IFC backing Proceeds will be allocated across renewable energy, energy efficiency, blue finance, certified green buildings and sustainable transport. The issuance carries alignment with theInternational Capital Market Association‘s Green Bond Principles and sits inside JKB’s own Green Finance Framework, both of which impose disclosure and use-of-proceeds reporting requirements that distinguish labelled green bonds from standard bank debt. A notable structural feature is the performance-based incentive attached to the transaction through the IFC-UK Market Accelerator for Green Construction (MAGC), a blended finance programme funded by theUK Department for Energy SecurityandNet Zero.

MAGC is designed to de-risk lending toward certified green buildings in emerging markets, meaning a portion of the return profile for JKB is contingent on verified green-building outcomes rather than being fixed at issuance. This is a relatively sophisticated structure for a MENA bank of this size and signals that IFC is using the transaction as a demonstration vehicle for the wider region. Haethum Buttikhi, group chief executive officer of Jordan Kuwait Bank, said the issuance “will mobilise capital towards projects that generate meaningful environmental and economic impact, while supporting the Kingdom’s Economic Modernisation Vision.”Momina Aijazuddin, IFC’s regional industry director for financial institutions, noted the partnership aims to support job creation and accelerate sustainable growth in alignment with Jordan’s national economic strategy.

Green bond issuance across the Middle East and North Africa has grown steadily since 2021, though Jordan remains a smaller market than the UAE or Saudi Arabia, where sovereign and quasi-sovereign issuers have driven volume. JKB’s transaction is noteworthy precisely because it is bank-led rather than sovereign-led, pointing to a gradual deepening of the domestic capital market beyond government paper. The deal aligns with theCentral Bank of Jordan‘s Green Finance Strategy, which provides