Jordan’s SMEs in line for USD 10 mn in EBRD-led climate financing: The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are providing a USD 10 mn loan to Jordan’s Cairo Amman Bank (CAB) to on-lend to SMEs working on climate change adaptation and mitigation tech and services, according to a statement (pdf) issued by the EBRD yesterday.

The details: The USD 10 mn package — of which USD 2.5 mn is being co-financed by the GCF — will also include a technical cooperation package funded by the EBRD, EU, and GCF to provide support on tech usage to integrate climate change adaptation and mitigation. It will also advise on where and how to direct investment. The EU will also provide unspecified investment incentives, the statement says.

BACKGROUND- This is the third loan provided to Jordan by the EBRD, EU and GCF under the Green Economy Financing Facility, the EBRD confirmed to Enterprise Climate. It’s the first facility being provided to CAB under the GCF-GEFF Regional Framework in Jordan, the statement notes.

IN CONTEXT- It’s part of a raft of recent regional loans for on-lending to climate-focused SMEs. The EBRD signed an agreement with Jordan’s Bank al Etihad to provide a USD 10 mn GEFF, with USD 500k of co-financing from the GCF in August this year. Morocco’s Bank of Africa – BMCE Group recently secured EUR 13 mn in loans to use for on-lending to SMEs, with EUR 9.75 mn of this funding coming from the EBRD and EUR 3.25 mn from the GCF, and the EU providing a separate EUR 1.43 mn grant. Last year, the EBRD greenlit a USD 25 mn loan to the National Bank of Kuwait Egypt in April, a USD 50 mn loan to QNB AlAhli in June, and a USD 100 mn facility to Egypt’s Banque Misr in November.