Green Finance Guarantee Program

Program Definition

A program dedicated to guarantee the risks of green finance loans, aiming to achieve the goals of sustainable development and address the challenges related to climate change and its impact on the environment by providing better financing opportunities for small, medium, and large companies and innovative projects.

Beneficiaries of the Program

Any financing allocated to projects and initiatives that have a positive environmental impact and contribute to develop the use of environmentally friendly (green) technologies, according to the EU Taxonomy definition, or approved / to be approved by the Central Bank of Jordan, including:

• Renewable energy
• Green buildings
• Sustainable transport
• Waste management and recycling
• Sustainable agriculture
• Green technology
• Water treatment
• energy efficiency
• Green tourism

Financing Objectives

working capital, fixed assets, development and expansion.

Type of Financing

Term loans and may offer guarantees for revolving loans to projects that fall under the definition of green finance.

Financing Ceiling

Funding up to 4.00 M. JODs. 

Loan Duration

• Repayment period is up to 10 years at maximum for financing fixed assets, development and expansion; including grace period up to 2 years
• Repayment period is up to 36 months at maximum for financing working capital; including grace period up to 1 year

Monthly interest due is paid during the grace period from the client’s own resources.

Guarantees

- The bank may ask for any collaterals based on client’s creditworthiness, in addition to the guarantee by the Jordanian Loans Guarantee Company.

- Project inside Amman; Guarantee percentage is 85%.

- Project outside Amman and/or is a project owned and/or managed by women; Guarantee percentage is 90%.

Guarantee Fees

0.5% based on guaranteed loan balance.

Other requirements

• The program covers all loans granted for green financing purposes, including loans granted through Central Bank mid-term program and green project financing programs; with interest rate of these programs being applied at the time of granting
• The bank is committed to obtaining a creditworthy Jordanian guarantor personal guarantee for entities owned by non-Jordanians, and also obtaining a guarantee from at least one of the main partners and authorized signatories of companies and institutions
• Projects that will be guaranteed must meet the technical requirements and environmental studies in accordance with the Central Bank instructions and the classification of green projects
• It is at the bank’s discretion to obtain life insurance and/or asset insurance with a value that covers the amount and duration of the loan