MICROCAPITAL BRIEF: EIB Lending Jordan Kuwait Bank $119m for SMEs Adjusting to COVID-19 Pandemic

Recently, the European Investment Bank (EIB), an entity of the EU, extended a credit line of EUR 100 million (USD 119 million) to Jordan Kuwait Bank in an effort to boost the Jordanian economy in response to the downturn caused by the COVID-19 pandemic. The funds are to be used for on-lending to small and medium-sized enterprises (SMEs) as part of the Economic Resilience Initiative, an EU program addressing “challenges in the Southern Neighbourhood and Western Balkans, such as forced displacement and migration, economic downturns, political crises, droughts and flooding.”

Founded in 1976, Jordan Kuwait Bank has 64 branches in Jordan and one in Cyprus. As of December 2020, its assets totaled JOD 2.81 billion (USD 3.96 billion). The bank’s majority shareholder is the Kuwait Projects Company (KIPCO), which has holdings in 24 countries in the Middle East and North Africa. Its 60 portfolio firms are active in financial services, education, manufacturing, media and real estate. At the close of its 2020 fiscal year, KIPCO had total assets of KWD 10.4 billion (USD 34.4 billion).

EIB, founded in 1958, is “focused on innovation, SMEs, infrastructure and climate,” primarily in EU member states and potential future member states. In addition to funding, the institution “adds value in project implementation and the modernisation of public policies thanks to its technical and financial expertise and advisory services.” As of December 2020, its total assets amounted to EUR 554 billion (USD 675 billion) with disbursements during the previous year totaling EUR 58.3 billion (USD 71 billion).

By Teo Lin-Bianco, Research Associate

Sources and Additional Resources

EIB press release
https://www.eib.org/en/press/all/2021-252-jordan-eib-and-jordan-kuwait-bank-join-forces-to-support-smes

Jordan Kuwait Bank homepage
https://www.jkb.com/

Jordan Kuwait Bank financial report 2020
https://www.jkb.com/sites/default/files/JKB_Annual_Report%20_2020_EN.pdf

KIPCO homepage
https://kipco.com/

EIB homepage
https://www.eib.org/

EIB financial report 2020
https://www.eib.org/attachments/general/reports/eib_financial_report_2020_en.pdf

EIB description of the Economic Resilience Initiative
https://www.eib.org/en/products/mandates-partnerships/eri/index.htm

Previous MicroCapital news on EIB
https://www.microcapital.org/microcapital-brief-finnvera-to-issue-780m-in-pandemic-relief-loans-in-finland-with-75-guarantee-from-eib/

Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.