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The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to US$ 12.1 million (€10.4 million) to Kawar Energy, a leading Jordanian renewable energy company.
The financing will support the optimisation of the company’s balance sheet and enhance its financial flexibility, driving forward the expansion of its renewable energy pipeline across Jordan.
Jordan has expanded its renewable energy capacity significantly, with clean energy accounting for a growing share of the country’s electricity mix. This investment will contribute to the country’s green transition by supporting a leading local developer and promoting competition within the renewable energy sector while maintaining strong local participation.
The financing will be complemented by an EBRD-funded technical cooperation package to develop skills and promote inclusive employment. The programme will introduce a company-certified apprenticeship scheme targeting young professionals and strengthen ties with local universities and technical institutions.
The financing will also enable Kawar Energy to put into place a comprehensive environmental, social and governance (ESG) management system. This will include an ESG assessment, policies and procedures aligned with European Union (EU) and national requirements, and a biodiversity action plan to ensure compliance with EBRD, EU and national biodiversity standards for renewable energy projects.
Aida Sitdikova, Director of Sustainable Infrastructure for the EBRD in the Middle East and Africa, said: “We are pleased to support Kawar Energy as it expands its renewable energy footprint in Jordan. This investment reflects the EBRD’s commitment to advancing green transition, supporting private-sector development, and promoting sustainable economic growth in Jordan”.
Nabeel Abu Ata, Director of Strategy and Investment at Kawar Investment, the parent company of Kawar Energy, said: “Jordan has been a pioneer in renewable energy deployment, and Kawar Energy is proud to be at the forefront of that transformation. This financing strengthens our capacity to invest in new projects, expand our regional footprint and continue delivering innovative energy solutions that support economic growth and sustainability.”
The EBRD began operating in Jordan in 2012 and has since provided more than €2.2 billion across 84 projects in the country, of which more than 70 per cent have been in the private sector. This has included financial support to the banking sector for the provision of loans, subordinated debt and trade finance facilities to micro, small and medium-sized enterprises.