The International Finance Corporation is subscribing up to $100 million in Jordan Kuwait Bank's second green bond, extending the multilateral's support for the country's sustainable finance market. The announcement, dated 15 July 2026, builds on Jordan Kuwait Bank's inaugural green bond issued in 2023. IFC said its investment supports the bank in issuing the bond to finance green, water, energy and sustainable urban development projects.
The bond is aligned with the International Capital Market Association's Green Bond Principles and Jordan Kuwait Bank's own Green Finance Framework, both of which establish best practices for issuers on transparency and disclosure, IFC said.
PROCEEDS TARGET BROAD GREEN AGENDA
Proceeds from the bond will be earmarked for blue finance, energy efficiency and renewable energy projects, certified green buildings and electric vehicles, promoting adaptation and resilience investments that address climate challenges, IFC said.
IFC noted that the proceeds of the bank's 2023 bond, Jordan's first green bond, were directed towards green projects including water and wastewater management, a critical priority for water-scarce Jordan.
The investment builds on IFC advisory work that supported the establishment of Jordan's first Green Building Incentives Framework and National Green Taxonomy, IFC said.
BLENDED FINANCE INCENTIVE ATTACHED
IFC's investment is supported by a performance-based incentive of up to $0.69 million under the IFC-UK Market Accelerator for Green Construction, or MAGC, a blended finance programme supported by the UK Department for Energy Security and Net Zero, which aims to encourage financial institutions to build or expand loan portfolios for certified green buildings. IFC describes blended finance as mobilising concessional capital from the public and philanthropic sectors alongside private capital to de-risk investment.
IFC said this is consistent with MAGC's broader goal of scaling green construction across emerging markets by helping financial intermediaries offer or expand green construction lending products.
Group chief executive Haethum Buttikhi said the second green bond "marks another important milestone in Jordan Kuwait Bank's sustainable finance journey". IFC said the investment is aligned with the World Bank Group's strategic priorities in Jordan and the country's Economic Modernization Vision.