Adnoc secures $3 billion loan from JBIC and four other banks

The Japan Bank for International Cooperation (JBIC) is providing $2.1 billion and Sumitomo Mitsui Banking Corporation (SMBC), the Tokyo branch of HSBC, Mizuho and MUFG are providing the rest, JBIC said in the statement



Adnoc and state-owned JBIC also signed a memorandum of understanding “to further strengthen the comprehensive strategic partnership” between them, focusing on decarbonisation, energy transition and energy efficiency. — File photo
Adnoc and state-owned JBIC also signed a memorandum of understanding “to further strengthen the comprehensive strategic partnership” between them, focusing on decarbonisation, energy transition and energy efficiency. — File photo

By Yousef Saba

Published: Sat 20 Nov 2021, 4:46 PM

State oil firm Abu Dhabi National Oil Company (Adnoc) signed a $3 billion loan agreement with Japan’s export credit agency and four other lenders, the agency said on Thursday.

The Japan Bank for International Cooperation (JBIC) is providing $2.1 billion and Sumitomo Mitsui Banking Corporation (SMBC), the Tokyo branch of HSBC, Mizuho and MUFG are providing the rest, JBIC said in the statement.

“This facility is intended to provide necessary support to Adnoc in ensuring stable imports of crude oil by Japanese companies,” JBIC said.

The loan is Adnoc’s sixth facility with the participation of JBIC. The oil giant took a similar $3 billion loan in 2018, also $2.1 billion from JBIC and the remainder from other banks.

Adnoc and state-owned JBIC also signed a memorandum of understanding “to further strengthen the comprehensive strategic partnership” between them, focusing on decarbonisation, energy transition and energy efficiency.

JBIC said Abu Dhabi is “very important for Japan’s energy resource strategy” as a key supplier of crude for over four decades, as well as allowing foreign oil firms to develop concessions in the emirate.

“In addition, Abu Dhabi has high potential in the decarbonization sector as it has abundant resources for renewable energy and subterranean structures suitable for CCS/CCU, and Adnoc is a leading organisation in said sector,” JBIC said, referring to carbon capture, storage and utilisation.

Adnoc said on LinkedIn on Thursday the agreement supports its 2030 strategy and contributes to diversifying funding sources. — Reuters


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