MICROCAPITAL BRIEF: EBRD to Guarantee $20m in Lending by Bank al Etihad to Small, Medium-sized Enterprises (SMEs) in Jordan

Bank al Etihad, whose shares are traded on the Amman Stock Exchange, recently secured an agreement from the UK-based European Bank for Reconstruction and Development (EBRD) to share risk on USD 20 million in lending by Bank al Etihad to small and medium-sized enterprises (SMEs) in Jordan. The borrowers – most of which are expected to be medium-sized firms – will be able to access EBRD’s “Advice for Small Business” program, through which EBRD connects SMEs with consultants and shares the cost of these services.

Bank al Etihad, whose services include leasing and brokerage accounts as well as special products for women and SMEs, has paid-up capital of JOD 160 million (USD 225 million). Established in 1978, it has 45 branches and 91 automated teller machines (ATMs). The bank also owns a 36-percent stake in Safwa Islamic Bank, which was founded in 2010 and was previously known as the Jordan Dubai Islamic Bank.

EBRD was founded in 1991 and has 66 shareholding countries – plus the EU and the European Investment Bank – as of 2018. Its goal is “the promotion of private and entrepreneurial initiative” in Eastern Europe, Central Asia, the Middle East and North Africa. During 2017, the bank invested EUR 9.7 billion (USD 11 billion) in 412 projects and took in profits of EUR 592 million (USD 699 million).

Sources and additional resources

Direct contact with EBRD

EBRD press release
http://www.ebrd.com/news/2018/ebrd-in-innovative-partnership-with-bank-al-etihad-in-jordan.html

Bank al Etihad background
https://www.bankaletihad.com/content/about-us

Bank al Etihad annual reports
https://www.bankaletihad.com/content/annual-reports

EBRD Financial Report 2017
http://www.ebrd.com/news/publications/financial-report/ebrd-financial-report-2017.html

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