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Adnoc lined up a USD 2 bn green loan backed by Korea Trade Ins. Corporation (K-Sure), marking its first-ever facility underwritten by the South Korean Export Credit Agency (ECA), the state-owned energy giant said in a press release. The facility brings its total green-labeled funding within the span of 18 months to USD 5 bn, after receiving a USD 3 bn facility from Japan Bank for International Cooperation last year.
The funding marks Adnoc’s second large financing transaction in less than a week. The energy giant also closed a landmark facility of up to USD 11 bn last week for its Hail and Ghasha offshore development, breaking new ground by pulling capital forward on gas it hasn’t produced yet.
The fresh capital will be used to “fund lower carbon projects across its operations,” the company said, without specifying which projects the bulk of the capital will land in. Adnoc claims to be among the least carbon-intensive oil and gas producers and plans to cut operational emissions intensity by another 25% by 2030. It’s also investing USD 23 bn to decarbonize its operations and scale new energy areas like hydrogen, geothermal, and renewables.
Advisors- First Abu Dhabi Bank served as green loan coordinator, with Santander acting as the ECA coordinator.
Background
Korea 💚 UAE energy players? This year, a consortium led by state-owned renewables giant Masdar — including Korea Electric Power Corporation and China’s GD Power — lined up USD 225 mn in financing from Korea Eximbank to develop the 2 GW Al Sadawi solar project in Saudi Arabia. Last year, Korea Eximbank was also said to provide a USD 150 mn loan for the 1.5 GW Al Ajban solar power plant in Abu Dhabi.
UAE-South Korea ties have been on the up in recent months, with officials saying in November that a comprehensive economic partnership agreement is in its final stages and expected to take effect by year-end, following a string of MoUs spanning energy, finance, investment, AI, and nuclear cooperation.
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