Bank Al Etihad Subordinated Loan (EBRD-50814)

Countries
  • Jordan
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 14, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Bank Al Etihad
The holder of the loan, grant, or other investment.
Sectors
  • Finance
  • Technical Cooperation
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, etc.
Investment Amount (USD)
$ 30.04 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 21.30
Converted using 2019-10-14 exchange rate.
Project Cost (USD)
$ 30.04 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported 21.30
Converted using 2019-10-14 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Dec 19, 2019

Disclosed by Bank Dec 16, 2019


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Project Description

According to bank documents, the EBRD has provided a subordinated loan of JOD 21.3 million to Bank Al Etihad ("BAE") to support the bank's growth plans and on-lending to private local SMEs. The subordinated loan will strengthen the capital base of BAE to support planned growth and the financing of SMEs in the local market.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Private Actors

Bank Al Etihad is a universal commercial bank and is the 4th largest in Jordan with market shares of 6.3%, 6.9% and 7.0% in terms of assets, loans and deposits as at 1Q19. Bank Al Etihad was established in 1978 and listed on the Amman Stock Exchange. BAE serves to corporate, SME, and retail clients through its 47 branches cross Jordan.

Contact Information

Mr. Anas Al Masri
fi@bankaletihad.com

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.