GuarantCo provided a portfolio guarantee of JOD 24.8 million (c. USD 35 million) to Capital Bank Jordan as the first bank in the country to close such a transaction. It will enable the bank to grow its infrastructure portfolio which is aligned with the PIDG 2023 – 2030 strategy focused on climate adaptation and mitigation transactions.

With a growing climate infrastructure financing gap, Jordan’s Nationally Determined Contribution (NDC), a climate action plan to cut emissions and adapt to climate impact, is now aiming to reduce emissions by 31 percent compared to a business as usual scenario, which is an increase from 14 percent set out in its initial NDC. While the Government of Jordan is expected to invest 5 percent of the financing requirement for these goals, 95 percent is expected to be mobilised through the private sector.

Through the portfolio guarantee, GuarantCo’s transaction enables Capital Bank Jordan to continue providing infrastructure finance to further invest in Paris aligned, sustainable infrastructure.  GuarantCo hopes that the demonstration effect of the transaction can catalyse similar guarantees across the region to enable continued financing of climate adaptation and mitigation infrastructure finance.

The transaction will make a direct contribution to 8.5: Achieve full and productive employment and decent work for all women and men, and SDG 9.1: Develop quality, reliable, sustainable and resilient infrastructure to support economic development and human well-being.