ADNOC Secures Loan from Japanese Banks for Two New Green Projects

On August 27, the Japan Bank for International Cooperation (JBIC), led by Governor HAYASHI Nobumitsu, signed two project loan agreements with Abu Dhabi National Oil Company (ADNOC). The loans, amounting to approximately USD 341 million and USD 130 million from JBIC, are supported by a credit line established in July 2024. These loans are co-financed with Mizuho Bank, Sumitomo Mitsui Banking Corporation, MUFG Bank, and The Hongkong Shanghai Banking Corporation Limited, Tokyo Branch, totaling co-financing of USD 569 million and USD 217 million, respectively.

The loans are issued under JBIC’s GREEN operations, aimed at funding ADNOC's initiatives that support global renewable and next-generation energy projects. This includes investments in energy-efficient power generation and heat supply projects to foster decarbonization and energy transition in the United Arab Emirates (UAE). The financing will aid ADNOC in advancing its sustainability objectives by enhancing its contribution to cleaner energy solutions.

ADNOC, a major energy company wholly owned by the Emirate of Abu Dhabi, is committed to decarbonizing its operations. The company has set ambitious targets, including achieving net zero emissions by 2045. ADNOC's strategic focus includes promoting renewable energy, advancing hydrogen and ammonia production, and implementing carbon capture and storage (CCS) technologies, along with other green energy initiatives.

Abu Dhabi plays a crucial role as a strategic ally for Japan's energy resource strategy, thanks to its vast renewable energy potential and favorable subterranean conditions for carbon capture and storage (CCS). The recent loans are intended to bolster ADNOC’s global decarbonization efforts and foster closer collaboration between Japanese firms and ADNOC, strengthening JBIC's relationships with the UAE, Abu Dhabi, and ADNOC. This partnership not only supports ADNOC’s initiatives in advancing sustainable energy solutions but also aligns with Japan’s and the UAE’s mutual goal of achieving decarbonized societies, enhancing both nations' commitment to environmental sustainability and energy transition.

As Japan’s policy-based financial institution, JBIC is committed to supporting sustainable development initiatives, including global environmental preservation. The bank will leverage its diverse financial facilities and project structuring schemes to provide crucial funding and assume risks associated with these efforts. By utilizing its extensive resources and expertise, JBIC aims to advance projects that promote environmental sustainability and contribute to global climate goals, ensuring continued support for impactful and forward-thinking initiatives.

The loans provided to Abu Dhabi National Oil Company (ADNOC) under JBIC’s GREEN operations are designed to support ADNOC’s decarbonization and energy transition initiatives. These loans also aim to promote the business expansion of Japanese companies by facilitating collaboration with ADNOC. By advancing these projects, JBIC reinforces its commitment to sustainable development and strengthens ties between Japanese firms and ADNOC, fostering growth in both the renewable energy sector and broader energy transition efforts.