Capital Bank of Jordan WCS (IFC-44560)

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
Approved
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
Mar 12, 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
CAPITAL BANK OF JORDAN
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)
$ 25.00 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 May 31, 2022

Disclosed by Bank Feb 9, 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 consists of a one-year senior loan, renewable for an additional one-year, of up to US$25 million to Capital Bank of Jordan (“CAP” or the “Bank”) under the COVID-19 Emergency Response WCS Envelope (WCS Envelope). The WCS Envelope is designed to provide funding to existing IFC client banks in emerging markets that will then extend trade-related or working capital loans to companies whose cash flows have been disrupted by the global outbreak of the coronavirus pandemic.                                                          

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

The proposed loan of up to US$25 million under the WCS COVID-19 response facility is a one-year loan, with the option to be rolled over for an additional one year at IFC’s discretion, from IFC’s own account. The use of proceeds will be directed to working capital or trade loans to SMEs in Jordan.

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.

Capital Bank, established in 1995, is a listed company on Amman Stock Exchange. The Bank offers a broad range of banking and financial products and services through an established network of 26 branches. CAP is also present in Iraq through its subsidiary, National Bank of Iraq, one of the main private banks offering banking and financial services to different sectors in the Iraqi market. In addition to banking, CAP also offers brokerage and financial advisory services regionally through its wholly owned subsidiaries: Capital Investment and Brokerage Company in Jordan, Capital Investment Fund Company in Bahrain, and Capital Bank Corporate Advisory in Dubai.

CAP has a diversified shareholding structure. Its largest shareholders include members of Al Janabi Family (collectively owning 21.24 percent), the Social Security Corporation (9.46 percent), members of the Darwazeh family (collectively owning 8.66 percent shareholding), Sara International Holding Ltd (5.03 percent) and Mr. Bassem Al-Salem (5.02 percent).  


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.

Capital Bank of Jordan PLC
Jamal Al Qudah
Head of Financial Institutions
+962 6 5100200
Jamal.AlQudah@CapitalBank.jo 
P.O.BOX 941283, Amman Jordan 11194
www.capitalbank.jo 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries 

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

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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