Adnoc inks $2b green financing pact with Korean firm

Adnoc has signed a $2 billion (Dhs7.34 billion) green financing agreement backed by Korea Trade Insurance Corporation (K-SURE) to fund lower carbon projects across its operations.

The deal reinforces Adnoc’s ambition to integrate sustainable finance into its growth plans.

The agreement was announced during the visit of Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, to the Republic of Korea, where he met with Youngjin Jang, President and Chairman of K-SURE.

The K-SURE-backed facility, structured under Adnoc’s Sustainable Finance Framework, will facilitate the financing of eligible projects compliant with international sustainable finance market standards. Sustainable Fitch provided an independent Second Party Opinion, confirming alignment of Adnoc’s Sustainable Finance Framework with global sustainable finance principles.

Khaled Al Zaabi, Adnoc Group Chief Financial Officer, said, "This facility reflects Adnoc’s commitment to financing the transformation of energy systems while maintaining strong capital discipline. Through our partnership with K-SURE, we are expanding access to green finance, deepening our economic ties with South Korea and strengthening Adnoc’s position as a leader in lower-carbon energy.”

This marks Adnoc’s first green financing facility backed by a Korean export credit agency (ECA), following a $3 billion (Dhs11 billion) transaction with the Japan Bank for International Cooperation (JBIC) in 2024. Together, these deals bring Adnoc’s total green funding to $5 billion (Dhs18.35 billion) in just 18 months, strengthening its track record in green finance.

Adnoc is one of the least carbon-intensive oil and gas producers and is further reducing its operational carbon emissions intensity by 25 per cent by 2030 while investing $23 billion (Dhs84.4 billion) to decarbonise its operations and accelerate the growth of new energies, including hydrogen, geothermal and renewables.

The company is a founding member of the Oil and Gas Decarbonisation Charter (OGDC), a coalition of International and National Oil Companies that have committed to zero methane emissions by 2030 and net zero by or before 2050.

The Green Loan Coordinator is First Abu Dhabi Bank (FAB) and the Export Credit Agency (ECA) coordinator for this agreement is Santander.

WAM