The Abu Dhabi National Oil Company (ADNOC) has been granted a green financing loan in the amount of $2 billion by Korea Trade Insurance Corporation (K-SURE) to fund projects that have a low carbon presence within its operations.
The structure of the facility is designed in accordance with the Sustainable Finance Framework of ADNOC that will facilitate funding of qualified projects.
The agreement is the first green financing facility offered by an oil and gas giant supported by a Korean export credit agency and follows a $3 billion deal with the Japan Bank for International Cooperation (JBIC) in 2024.
Meanwhile, the two agreements combined have seen the total green funding of ADNOC reach $5 billion within the last 18 months. ADNOC intends to lower the intensity of its operational carbon emissions by 25 percent by 2030 and invests $23 billion (AED 84.4 billion) to decarbonize its operations.
Therefore, the First Abu Dhabi Bank (FAB) and the Export Credit Agency (ECA) functioned as the green loan coordinator. The coordinator of the agreement was Santander. Sustainable Fitch offered an independent second-party opinion.
As of Thursday, ADNOC won a structured financing of up to $11 billion to monetize future gas production in its Hail and Ghasha development following the departure of Lukoil, the Russian firm, from the project.
