DCM Ahli Sustainability Bond (IFC-48972)

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
B
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."
Borrower
JORDAN AHLI 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.
Project Cost (USD)
$ 90.00 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 15, 2024

Disclosed by Bank Apr 17, 2024

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Contact the EWS Team

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.

The proposed investment entails an (i) IFC subscription of up to US$50 million in a sustainability bond to be issued by Jordan Ahli Bank Plc (“JAB” or the “Bank”) in Jordan covering the full amount at issuance and (ii) the provision by IFC of trade finance line of up to US$40 million under the Global Trade Finance Program (GTFP) for up to one year tenor (the “Project”). The bond will be structured in alignment with the International Capital Market Authority (“ICMA”) Sustainability Bond Guidelines (“SBG”), as confirmed by a Second Party Opinion (“SPO”) provider, and will aim to finance JAB's sustainability assets, including loans towards climate projects and women-owned or women led Small and Medium Enterprises (“WSMEs”).

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The project will not support activities on IFC Exclusion List, any coal-related activities, as well as higher risk business activities that may involve (a) involuntary resettlement, (b) risk of adverse impacts on Indigenous Peoples, (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, or (d) significant Occupational Health and Safety risks. Given that activities to be supported under the project are expected to have low to medium E&S risks, this project has been categorized as FI-2 in accordance with IFC's Sustainability Policy.

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

The total Project Cost is up to US$90 million, consisting of:

(i) subscription for up to US$50 million in a 6-year senior Sustainability Bond to be privately issued by JAB for IFC’s own account; and

(ii) Trade finance line of up to US$40 million under the GTFP with a tenor of up to one 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.

The Project Sponsor is Jordan Ahli Bank Plc (“JAB” or the “Bank”). JAB was established in 1955 in the Hashemite Kingdom of Jordan, and thereafter has grown to become one of the main market players in the Jordanian financial sector. The Bank ranks as the 7th largest conventional bank in Jordan by total assets as of year-end 2022, serving corporate, SMEs and retail segments in addition to providing investment banking services. Other services are provided by the Bank through its fully owned specialized subsidiaries include financial leasing, microfinance, brokerage services, and investments in fintech focused companies.

JAB is a publicly listed company on Amman Stock Exchange since 1996. The main shareholders include Al-Mouasher family (with a direct shareholding of 13.3%), Byblos Bank (with a direct shareholding of 10.4%), Jordan Social Security Corporation (with a direct shareholding of 10.3%), Jordan Worsted Mills Company (with a total shareholding of 9.0%) and Jordan Investor Center Company (with a direct shareholding of 5.0%). The remaining shareholding of 52.0% is distributed among several shareholders, having, each, a shareholding below 1.5%.


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 Ahli Bank
Majed Hejab
Head of Treasury, Investments and Financial Institutions
+96265206000
Majed.Hejab@ahli.com
Queen Noor Street, Shemesani, Amman, Jordan
www.ahli.com

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

How it works

How it works