51575 - Safwa Loan

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Summary of Investment Information

Project Number

51575

Company Name

Safwa Islamic Bank

Date SPI Disclosed

Oct 20, 2025

Country

Jordan

Region

Middle East

Projected Board Date

Nov 19, 2025

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jan 18, 2026

Department

CF5MI - Regional Industry FIG MCT/FIG Middle East

Industry

Financial Markets

Previous Events

Approved : Dec 19, 2025
Signed : Dec 25, 2025
Invested : Jan 15, 2026

Sector

Commercial Banking - General

Additional Project Attributes

Blended Finance

Project Description

The proposed project entails the following investment package to Safwa Islamic Bank (SIB, Bank): (i) a 5-year senior unsecured financing facility up to of up to US$100 million, from own account and mobilization, structured as an Islamic finance product; (ii) possible additional financing of up to US$50 million, including mobilization, to be considered at a later stage and after the disbursement of (i); and (iii) an up to US$50 million GTFP trade line for up to one year tenor (the “Project”).

SIB is an Islamic private-sector bank headquartered in Amman, Jordan. The senior financing facility proceeds will be earmarked to on-lending to both Small and Medium Enterprises (SMEs) and climate-eligible projects. The proceeds for the possible additional financing are expected to be earmarked to support green buildings in Jordan.

The Project is expected to be supported by the Global SME facility (GSMEF) as described in the Blended Finance section.

Associated Advisory Engagement

IFC targets to provide advisory services to SIB to build its internal capacity and help the Bank configure its processes, procedures and systems to be ready to support the implementation and tracking requirements of the Project. The scope of the advisory services may be increased to include supporting the Bank in the development and implementation of its certified green building financing program.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	75.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to SME Borrowers
Straight Senior Loan	Labeled: Green;Blue;Social-Loans/Bonds
Straight Senior Loan	Labeled: Green;Blue;Social-Loans/Bonds

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The Project is expected to have the following Development Impact: Stakeholders effect — Increased access to finance for SMEs: This Project earmarks 50 percent of the proceeds to SMEs, providing critical long-term liquidity for Sharia compliant products with long tenors such as Ijara. Stakeholders effect — Increased access to climate finance: This Project will earmark 50 percent of the loan proceeds to climate eligible lending across three segments: Retail, SME and Corporate. IFC will operationalize a climate finance framework and tracking system (green taxonomy aligned to IFC eligibility criteria, tagging, reporting) to enable a credible scale up and transparency of SIB's green portfolio. Stakeholders effect — Improved quality of climate finance: The Project is expected to allow SIB to extend climate sub-loans with tenors for up to 5 years. Market Outcomes Competitiveness: IFC anticipates that the Project will promote sustainability through providing a sizable climate funding to a prominent Islamic bank in Jordan and increase overall climate and green financing in Jordan.

The Project is expected to have the following Financial Additionality: (i) Innovative Financing Structure: IFC will structure the first thematic long term wholesale funding issued in the Jordanian market that adheres to Islamic finance principles (Shari’a); (ii) Financing Structure: IFC financing is expected to lengthen SIB’s funding tenor and diversify the funding profile; (iii) Mobilization: IFC plays an active and direct role in mobilizing financing from other investors. The proposed mobilization will increase the financing amount of this Project on a best efforts basis. In addition, IFC expects the Project to have the following Non-financial Additionality: (i) Knowledge, Innovation and Capacity Building: IFC targets to provide advisory services to SIB to build its internal capacity and help the Bank configure its processes, procedures and systems to be ready to support the implementation and tracking requirements of the Project. The scope of the advisory services can potentially include supporting the Bank in the development and implementation of its certified green building financing program. (ii) Standard Setting: The Project will help SIB develop and implement IFC’s E&S Management System procedures.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of Outstanding Loans, SMEs	number	Not Available	Not Available	Not Available
SME share of total loan portfolio	%	Not Available	Not Available	Not Available
Value of Outstanding Loans, SMEs	$	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The Project consists of a Sustainability Loan and a trade finance line under the Global Trade Finance Program (GTFP) to Safwa Islamic Bank (SIB) in Jordan. The Sustainability Loan’s use of proceeds will include MSMEs and climate-eligible sub-projects, including Green Buildings and climate-smart SMEs.
The E&S risks and potential impacts associated with the supported MSME activities and climate-eligible projects are considered limited and readily addressed through mitigation measures. Thus, the Project has been categorized as FI-2 in accordance with IFC’s Environmental and Social Sustainability Policy. The key E&S risks and potential impacts for this Project derive from the activities of sub-borrowers and the Bank’s capacity to identify and manage E&S risks and potential impacts associated with MSMEs and climate projects supported under this transaction.
The Project will not support coal-related activities, or higher risk business activities that may include a) involuntary resettlement; b) risk of adverse impacts on indigenous peoples; c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; d) risk of retrenchment; or e) significant occupational health and safety risks. For this Project, the Bank will screen transactions against the IFC Exclusion List, host country E&S laws and regulations and will screen out higher E&S risk transactions as contemplated by the Performance Standards. In addition, the Bank will adhere to the relevant requirements of Life and Fire Safety of IFC’s Performance Standard 4 and Labor and Working Conditions of IFC’s Performance Standard 2. This project will not trigger IFC commitment to sub-project disclosure.

SIB currently does not have an Environmental and Social Management System (ESMS) in place, nor designated staff responsible for managing the E&S risks and impacts of its lending activities.
SIB will be required to develop an Environmental and Social Management System (ESMS) to ensure it can effectively manage the E&S risks associated with MSMEs and climate lending. In line with the IFC Performance Standard (PS) 2, the Bank will also revise its Human Resources (HR) policies and Code of Conduct to explicitly address sexual harassment and Gender-Based Violence and strengthen its internal grievance mechanism.

S.no	Title	Anticipated Completion Date
1	Develop ESMS	12/22/2025
2	Hire qualified ESMS officer	12/22/2025
3	Develop a training plan	12/22/2025
4	Implement the training plan	03/22/2026
5	Enhance HR policies and procedures	01/07/2026

Contacts

For Inquiries About the Project, Contact

Safwa Islamic Bank
Ahmad Ghnaim
CFO
+9626460?2100
ahmad.ghnaim@safwabank.com
Building No. 38, Suleiman Al-Nabulsi Street, Abdali (Al-Abdali Area), Amman 11118, Jordan
www.safwabank.com

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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