Arab Bank has published an updated Sustainable Finance Framework that broadens the scope of its sustainable financing activity to encompass transition finance for carbon-intensive industries, alongside the use-of-proceeds green and social bond categories that underpinned its previous sustainability framework. The Amman-headquartered bank launched the revised framework in February 2026.
The updated framework is structured around three distinct financing categories: use-of-proceeds instruments, which include green bonds, social bonds, and mixed-use sustainability bonds where proceeds are directed to pre-defined eligible projects; general purpose financing, in which the financing terms are linked to specific sustainability objectives or KPIs, or the borrower's activities are centred on sustainable practices; and transition finance, a category that funds specific decarbonisation projects in high-emitting sectors, provided the borrower has a credible, time-bound and transparent transition strategy.
FRAMEWORK ALIGNED WITH ICMA STANDARDS
The framework has been aligned with the International Capital Market Association's Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and Climate Transition Finance Handbook, as well as the Loan Market Association's green, social and sustainability-linked loan principles.
TRACK RECORD IN SUSTAINABLE CAPITAL MARKETS
Arab Bank has prior experience in the sustainable capital markets. In October 2023 it issued a USD 250 million perpetual Sustainable Additional Tier 1 bond, the first sustainable perpetual AT1 issuance in Jordan.