Loans for Abu Dhabi National Oil Company under GREEN Operations : Promoting Business Expansion of Japanese Companies and ADNOC’s Initiatives for Decarbonization and Energy[...]

• Region: The Middle East
• Infrastructures
• Environment
• Untied Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on August 27 two project loan agreements with Abu Dhabi National Oil Company (ADNOC) amounting up to approximately USD341 million and approximately USD130 million, respectively (JBIC portions), based on the credit line^*1 set up in July 2024. The loans are co-financed with Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., and The Hongkong Shanghai Banking Corporation Limited, Tokyo Branch, bringing the total co-financing amounts to USD569 million and USD217 million, respectively.
   
2. The loans are extended under JBIC's GREEN operations^*2 and are intended to provide the funds necessary for ADNOC to implement projects contributing toward the supply of renewable and next-generation energy around the world as well as projects related to energy efficient power generation and heat supply contributing to decarbonization and energy transition in the United Arab Emirates (UAE).
   
3. ADNOC is a leading energy company wholly owned by the Emirate of Abu Dhabi (Abu Dhabi) that has a target to decarbonize its operations. ADNOC has the goals of achieving net zero emissions by 2045, promoting renewable energy, developing hydrogen and ammonia, carbon capture and storage (CCS^*3), and other green energy initiatives.
   
4. Abu Dhabi is a strategic partner and a very important ally for Japan's energy resource strategy. In addition, Abu Dhabi has high potential in the sector of decarbonization and energy transition as it has abundant resources for renewable energy and subterranean structures that are suitable for CCS. The loans aim to support ADNOC's initiatives for decarbonization around the world and create opportunities for collaborations between Japanese companies and ADNOC and its subsidiaries by strengthening JBIC's relationships with the UAE, Abu Dhabi, and ADNOC, and they are expected to contribute toward realizing the decarbonized societies that Japan and UAE are aiming for.
   
5. As Japan's policy-based financial institution, JBIC will continue to provide financial support for sustainable development efforts, including those for global environmental preservation, by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
   

Note

1. *1
   See press release on July 4, 2024.
2. *2
   See announcement on July 2, 2018.
3. *3
   Carbon dioxide Capture and Storage (CCS) is a technology that separates and captures carbon dioxide that would otherwise become a greenhouse gas and stores it in deep waterbeds or geological formations.