MICROCAPITAL BRIEF: Bank al Etihad Borrowing $20m from European Bank for Reconstruction and Development (EBRD) for Micro, Small, Medium-Sized Enterprises (MSMEs) in Jordan

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, has agreed to open a credit line of USD 20 million for Bank al Etihad, a Jordanian provider of financial services to both large and small organizations, for on-lending to micro-, small and medium-sized enterprises (MSMEs). EBRD will also loan an additional USD 10 million to al Etihad for financing trade activity. Along with the loans, EBRD will provide technical assistance to support al Etihad’s use of best practices and development of products specific to the needs of MSMEs.

Al Etihad has a capital base of JOD 270 million (USD 380 million), 37 branches and 52 automated teller machines (ATMs). Among its holdings are Etihad Brokerage and a 10-percent stake in The National Bank, which is located in Palestine.

EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and it reported total assets of EUR 49 billion (USD 65 billion) at the end of that year.

By the MicroCapital Team

About Bank al Etihad

Bank Al Etihad (BAE) (previously known as Union Bank) is a Jordanian financial services institution that was established in 1978. BAE is headquartered in Amman and operates a network of 34 branches in Jordan. BAE also owns a subsidiary, Etihad Brokerage, which was established in 2006. BAE reported total assets of JOD 1.9 billion (USD 2.72 billion) as of December 31, 2013. Further financial information on BAE is available on the bank’s website in Arabic.

About the European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and it reported total assets of EUR 49 billion (USD 65 billion) at the end of the year.

Sources and additional resources:

European Bank for Reconstruction and Development Press Release: “EBRD and Bank al Etihad support small businesses and trade in Jordan:” http://www.ebrd.com/news/2015/ebrd-and-bank-al-etihad-support-small-businesses-and-trade-in-jordan.html

MicroCapital Universe Profile on Bank al Etihad: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Al+Etihad+%28BAE%29

MicroCapital Universe Profile on the European Bank for Reconstruction and Development (EBRD): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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