ADNOC Completes $2 Billion Green Loan with K-SURE Support

Post by : Bianca Suleiman

ADNOC has advanced its sustainable financing approach by securing a substantial $2 billion green loan backed by the Korea Trade Insurance Corporation (K-SURE). This latest financing elevates the energy company's total green funding to an impressive $5 billion within a mere 18 months, underscoring its commitment to lower-carbon investments and innovative energy solutions for the future.

The announcement was made during Dr. Sultan Al Jaber's visit to South Korea, where the Minister of Industry and Advanced Technology and ADNOC's Managing Director and Group CEO met with K-SURE President and Chairman Youngjin Jang. This meeting aimed to formalize the collaboration and fortify economic ties between the UAE and South Korea.

Funding Aligned with Global Sustainability Standards

The $2 billion financing is structured under ADNOC's Sustainable Finance Framework, ensuring that the funds are allocated to projects meeting recognized environmental and sustainability criteria. An independent Second Party Opinion from Sustainable Fitch affirmed that the framework complies with global sustainable finance principles, a critical factor for transparency and lender trust.

This facility marks ADNOC's inaugural collaboration with a Korean export credit agency, following a prior $3 billion agreement finalized in 2024 with the Japan Bank for International Cooperation (JBIC). These agreements collectively pave the way for ADNOC's robust track record in green financing, positioning the company for greater competitiveness in future sustainable debt markets.

Accelerating Decarbonization and New Energy Initiatives

Khaled Al Zaabi, ADNOC Group Chief Financial Officer, remarked that the partnership with K-SURE enhances access to sustainable financing and strengthens economic relations with South Korea. First Abu Dhabi Bank will serve as the Green Loan Coordinator, while Santander acts as the export credit agency coordinator.

ADNOC has set a target to lower its operational carbon intensity by 25% by 2030, committing approximately $23 billion to decarbonization and new energy projects. These initiatives encompass hydrogen, geothermal, renewables, and technologies aimed at minimizing emissions across core operations.

Funds from the new loan are anticipated to back initiatives targeting lower-carbon infrastructure and emission-reduction technologies. The ECA-backed framework provides ADNOC with advantageous financing rates while allowing for flexible allocation of funds across various qualified projects.

Enhancing Global Partnerships for Sustainable Energy Advancement

This deal exemplifies ADNOC's strategy of merging growth with responsible energy transition efforts. By prioritizing certified green financing and forging international partnerships, the company aims to position itself as a leading provider of lower-carbon energy while continuously enhancing global investment connections.

In summary, the newly secured K-SURE-backed loan not only expands ADNOC's green capital base but also reinforces its long-term decarbonization strategy—fostering a more sustainable energy ecosystem as the company adapts its portfolio.