- Region: The Middle East
- Infrastructures
- Environment
- Untied Loans
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on February 20 two project loan agreements with Abu Dhabi National Oil Company (ADNOC) amounting up to approximately USD53 million and approximately USD9 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 and The Hongkong Shanghai Banking Corporation Limited, Tokyo Branch, bringing the total co-financing amounts to approximately USD88 million and approximately USD15 million, respectively.
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ADNOC, a leading energy company that is wholly owned by the Emirate of Abu Dhabi (Abu Dhabi), has an ambition to decarbonize its operations. It seeks to achieve net zero emissions by 2045, promote renewable energy, and develop hydrogen and ammonia, carbon capture and storage (CCS*4), and other green energy initiatives.
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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.
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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
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The loans follow similar loans made to ADNOC in August 2024 under the credit line.
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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.