DCM JKB Green Bond (IFC-46431)

Countries
  • Jordan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 20, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
JORDAN KUWAIT BANK
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 13, 2022

Disclosed by Bank Sep 8, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank provided information, the proposed investment is for IFC to subscribe to up to US$ 50 Million in the first green bond to be issued by Jordan Kuwait Bank (the “Bank” or” JKB”) in Jordan covering the full issuance and up to US$ 40 Million GTFP trade line for up to one year (the “Project”). The investment will include an up to US$ 36 million investment from IFC’s own account and up to US$14 million co-investment through IFC Blended Finance participation by Canada-IFC Blended Climate Finance Program (BCFP) and MENA Private Sector Development (PSD) facilities as described in the Blended Finance Section. The bond proceeds will be used by the Bank to finance eligible green projects and assets in Jordan.

IFC targets to provide advisory support to the Bank in the following areas: (i) internal capacity development to help the Bank configure its processes, procedures and systems to be ready to support the implementation requirements of the green bond framework; (ii) green pipeline and product development to help the Bank increase its pool of eligible green assets; and (iii) market outreach and green branding. Furthermore, IFC’s Advisory Services (AS) will support JKB to develop green asset tracking and reporting framework which the JKB will be responsible for implementing and adhering to internationally recognized standards of annual reporting and disclosure required under the ICMA Green Bond Principles.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project includes two investments: (i) US$ 50 Million subscription in a green bond the Bank is planning to issue; and (ii) US$ 40 Million GTFP trade line with tenors up to one year. The green bond will be privately issued by JKB and will have a proposed tenor of five year.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

JKB is one of the leading private sector banks in Jordan. Established in 1976, the Bank operates a domestic network of 64 branches distributed throughout Jordan and one branch in Cyprus. JKB is a public shareholding company listed on Amman Stock Exchange and governed by a board of directors. The Bank is majority-owned by Al-Rawabi United Holding Company, a wholly owned subsidiary of Kuwait Projects Holding Company (“KIPCO”). KIPCO is Kuwaiti holding group with diversified investments in more than 60 companies across 24 countries. KIPCO was established in 1975 by Al Futtooh Holding Company, which is wholly owned by members of the Kuwaiti royal family. Other shareholders in JKB include Jordan’s Social Security Corporation and Odyssey Reinsurance.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Jordan Kuwait Bank
Mr. Haethum Buttikhi
CEO
+962 5629400
haethum@jkbank.com.jo 
Amman - Al-Abdali- 62 Omaia Bin Abd Shams St.
https://www.jkb.com/ 

ACCESS TO INFORMATION

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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org 

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How it works