(MENAFN- Advvise) Founded in 1995 as a corporate bank focused on export and trade finance, Capital Bank of Jordan (CBoJ) has made a strategic shift towards SME finance and good customer proximity through digital channels and well-designed digital products and services. With its commitment to the SME sector and an elaborate set of products and services, the bank aims to become the leading SME bank in the country.
The CBoJ has been an AFD client since 2010, a partnership that was further extended with the signing of a trade finance guarantee between National Bank of Iraq, a subsidiary of Capital Bank of Jordan, and Proparco last July.
The loan from Proparco (up to 50 million USD) and DEG (up to 25 million USD) will help the bank to finance and develop its portfolio of SMEs with a particular focus on women-led businesses, start-ups -ups and FinTechs, youth-owned businesses and SMEs located outside the capital, Amman. An impact bonus financed by a grant (the MENA Facility) will be implemented simultaneously if all the performance criteria are met. The aim is to help the bank finance segments which have difficulty accessing traditional financial services but which are considered to have a high impact on economic development. The MENA Facility launched by AFD Group, thanks to support from the European Union, has been operational since mid-2021 and aims to support financial inclusion and the financing of SMEs in seven Mediterranean countries: Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine and Tunisia.
“We are very pleased to deepen Proparco’s partnership with Capital Bank of Jordan through this $ 50 million financing, which aims to provide financial solutions to Jordanian SMEs with a particular focus on women-led businesses, start-ups and fintechs. The contribution of the European Commission to this operation will make it possible to go further in supporting Jordanian SMEs at a time when the private sector has an essential role to play in the economic recovery of countries impacted by the Covid 19 pandemic â, he added. declared Djalal Khimdjee, deputy. Managing Director of Proparco.
âWe are proud to partner with Proparco to support Capital Bank of Jordan, a strong partner clearly focused on constant growth and exceptionally well positioned to strengthen SMEs in Jordan. Together, we are convinced that we can create a strong positive impact on development, âsaid Monika Beck, member of the board of directors of DEG.
The Chairman of the Capital Bank Group, Bassem Al-Salem, commented on the signing of this loan agreement: âCapital Bank’s partnership with Proparco and DEG goes even further in our recognized leadership in the SME sector, allowing us to continue to promote sustainable economic development in Jordan. through our support for this job-creating sector. This funding will propel investments, particularly in women-owned businesses and FinTechs, two of the country’s most important emerging sectors, and will be a key contributor to supporting the expansion of Capital Bank‘s SME portfolio through the ‘access to stable and long-term funding. . He added that Capital Bank has implemented a business strategy focused on the empowerment of SMEs, coupled with the provision of all the financial tools and technological advances essential to the growth of their businesses.
âOur strategic partnership with Proparco and DEG is fully in line with our mission to help provide SMEs with the dedicated tools and products necessary to enable them to develop their activity. Capital Bank’s commitment to SMEs is also demonstrated by our plans to create Neo Bank, our digital bank, which is designed to meet the needs of the sector, working in tandem with the Switch-On for Business application for transparent and efficient financial transactions. This will help our SMEs, with a special focus on women-led businesses, FinTech companies and startups, to spur innovation, create economic value and foster sustainable development in Jordan â, added the CEO of Capital Bank Dawod Al Ghoul.
The project is expected to improve access to finance for more than 400 SMEs, with particular emphasis on financing for women owned / led businesses; as such, the project qualifies for the 2X Challenge, a multilateral initiative that aims to support projects that empower women as entrepreneurs, business leaders, employees and consumers of products and services and increase their participation in the economy. In addition, the project will maintain nearly 9,700 jobs in SMEs financed by the loan.
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