Abu Dhabi state oil company Adnoc has secured a $2 billion green financing facility backed by South Korea’s export credit agency to fund lower carbon projects across its operations as it seeks to reduce its emissions.
The agreement is backed by Korean export credit agency, known as Korea Trade Insurance Corporation (K-Sure), Adnoc said in a statement on Friday.
The deal marks Adnoc's first green financing facility backed by the Korean agency, following a $3 billion transaction with the Japan Bank for International Co-operation in 2024. Together, the two agreements bring the company's total green funding to $5 billion in just 18 months.
“This facility reflects Adnoc’s commitment to financing the transformation of energy systems while maintaining strong capital discipline,” said Khaled Al Zaabi, Adnoc Group chief financial officer. “Through our partnership with K-Sure, we are expanding access to green finance and deepening our economic ties with South Korea.”
The $2 billion in green financing will be used for eligible projects that comply with international sustainable finance market standards, according to the report.
The K-Sure backed green financing deal comes as Adnoc aims to reduce its operational carbon emissions intensity by 25 per cent by 2030 while investing $23 billion to decarbonise its operations and accelerate the growth of energy sources such as hydrogen, geothermal and renewables.
The agreement was announced during the visit of Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc's managing director and Group chief executive, to Korea, where he met with Youngjin Jang, president and chairman of K-Sure.
On Thursday, Adnoc said it had secured $11 billion in structured financing from 20 banks to monetise midstream assets associated with its Hail and Ghasha offshore gas production.
Adnoc and its partners on the concessions, Italy's Eni and Thailand's PTT Exploration and Production Public Company, opted for non-recourse financing, the Abu Dhabi energy company said on Thursday.
