📋 Tender Overview
Location:
Jordan
Project number:
56258
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
FI
Approval date:
26 Mar 2025
Status:
Exploratory
English-language PSD published:
18 Feb 2025
Project Description
Provision of a senior unsecured loan of USD 75 million to Housing Bank for Trade & Finance ("HBTF") to support lending to SMEs in Jordan. The loan is expected to be disbursed over three equal tranches. The term of the loan is 5 years with 2 years grace period.
Project Objectives
The EBRD loan will support HBTF's SME lending activities and expand access to finance for underserved SMEs in Jordan.
Transition Impact
ETI score: 60
Jordanian SMEs constitute 95% of active businesses in the country, contributing approximately 40% to GDP and providing 70% of total private sector employment. However, access to finance remains a significant challenge for MSME growth, with bank lending to SMEs accounting for only about 11% of total lending.
TI qualities:
Competitive: the project will support the SME portfolio expansion.
Resilient: the project aims to ensure prudent lending practices and adequate portfolio quality.
Client Information
HOUSING BANK FOR TRADE AND FINANCE
The Housing Bank for Trade and Finance ("HBTF") was established in 1973 as a public shareholding limited company headquartered in Amman. The bank is the second largest one in Jordan by total assets and is listed on the Amman Stock Exchange. HBTF is a universal bank offering banking services to retail, corporate, government and public sector and SME clients through its large branch network of 104 branches in Jordan and 57 branches distributed between the foreign branches and the subsidiaries.
EBRD Finance Summary
USD 75,000,000.00
Total Project Cost
USD 75,000,000.00
Additionality
The SME loan promotes financing for MSMEs in Jordan.
Environmental and Social Summary
Categorised FI (ESP 2024). Housing Bank for Trade and Finance (HBTF) is an existing client with satisfactory environmental and social (E&S) performance under its current exposures. The proceeds from this transaction will be used for FIF-SME programs with on-lending to eligible private local SMEs, which is considered low risk from an E&S perspective. HBTF is integrating environmental and social criteria into its credit policies and publishes its annual report on its website. HBTF's existing environmental and social management system is deemed commensurate with the E&S risk level. Under an ongoing transaction, 54931 GCF GEFF Regional programme, HTBF is preparing a climate transition plan. HBTF should continue improving its E&S management system, as necessary, to effectively assess, manage, and monitor the E&S risks and impacts associated with its sub-projects. HBTF should comply with the E&S Requirements (ESRs) 2, 4, and 9 under the 2024 ESP, including the exclusion list, align with the EBRD's E&S Risk Management guidance, and sub
