The European Bank for Reconstruction and Development (EBRD) is providing Capital Leasing with a US$ 5 million loan under the Green Economy Financing Facility (GEFF). This includes US$ 1.25 million of co-financing from the Green Climate Fund (GCF).

The loan to Capital Leasing marks the first to be signed in Jordan to a leasing company under the GEFF regional programme in Jordan, and the seventh GEFF facility to be signed in the country overall.

The facility will mean easier access to finance for Jordanian micro, small and medium-sized enterprises (MSMEs) investing in climate mitigation and adaptation technologies –  for example, individuals and private companies working in energy services, or as technology suppliers, producers and service providers.

The European Union (EU) is providing a grant of up to €560,000 to accelerate climate adaptation and mitigation technologies and services by local MSMEs and households. This grant will provide eligible sub-borrowers with access to dedicated green finance tools, equipment and solutions as well as awareness raising to encourage the sub-borrowers to prioritise greener technologies within their businesses.

Capital Leasing will also benefit from a technical cooperation package funded by the EBRD, EU and GCF that will go towards implementation and monitoring of the facility. The eligible sub-borrowers and Capital Leasing will have the chance to take part in training on climate change mitigation, on-lending and adaptation technologies among MSMEs and retail clients.

The signing ceremony was held during the EBRD’s Annual Meeting in London and was signed by the EBRD’s Head of Financial Institutions, Francis Malige, and Chairman of Capital Leasing, Tamer Ghazaleh.

“Climate action requires collaboration and innovation,” explained Francis Malige. “It also requires patient, relentless focus, one investment at a time. Through this facility with Capital Leasing, and with the unwavering support of the EU and the GCF, we are empowering Jordanian entrepreneurs and small businesses to lead the way in adopting climate-smart technologies."

Tamer Ghazaleh commented: “We are honoured to partner with the EBRD, the EU and the GCF on this milestone initiative. This facility will enable us to extend green financing to a wider base of businesses and individuals across Jordan, supporting innovation and sustainability in key sectors. At Capital Leasing we are committed to playing an active role in driving the country’s transition to a greener and more resilient economy.”

Henrike Trautman, European Commission Director for the Middle East said: “This new partnership is a tangible example of how the European Union is translating its climate ambitions into action — by enabling local businesses and households in Jordan to access affordable green financing. With this support, we are not only fostering a more sustainable and resilient private sector but also helping Jordan advance its green transition in a way that benefits communities and protects the environment.”

Capital Leasing is fully owned by Capital Bank of Jordan and specialises in providing financial leasing services to retail, corporate and SME clients. It offers financing across various sectors and industries for assets such as passenger and commercial vehicles, equipment and plant machinery, and real estate.

Since 2012 the EBRD has provided more than €2.3 billion through 75 projects in Jordan, of which 70 per cent are in the private sector, including financial support to the Jordanian banking sector through MSME loans, subordinated debt and trade finance facilities.