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JBIC leads US$3 billion debt facility for Adnoc
Deal seeks to ensure stable crude oil supply from Abu Dhabi for Japanese companies
Michael Marray 24 Nov 2021

The Japan Bank for International Cooperation (JBIC) has led a US$3 billion debt facility for Abu Dhabi National Oil Corporation (Adnoc), intended to support the energy group in ensuring stable imports of crude oil by Japanese companies. JBIC is lending US$2.1 billion. The facility is co-financed by Sumitomo Mitsui Banking Corporation as the agent bank, HSBC Tokyo Branch, Mizuho Bank, and MUFG Bank, which together are lending another US$900 million.

Also on November 17, JBIC and Adnoc signed a memorandum of understanding (MoU) aimed at strengthening their strategic partnership. Adnoc is a state-run oil company wholly owned by the Emirate of Abu Dhabi.

This is the sixth loan that JBIC has provided to Adnoc. The last facility, amounting to US$3 billion, was put in place in January 2018, and also featured SMBC, HSBC and Mizuho.

JBIC said Abu Dhabi has been a stable and important source of crude oil to Japan for more than 40 years. Foreign oil companies conduct business with the emirate based on oil concession agreements.

Abu Dhabi also has high potential in the decarbonization sector as it has abundant resources for renewable energy and subterranean structures suitable for carbon capture and storage (CCS) and carbon capture and utilization (CCU). CCS is a technology that separates and captures carbon dioxide that would become a greenhouse gas and stores it in deep waterbeds or geological formations, while CCU separates and captures carbon dioxide that would become a greenhouse gas and utilizes it. Adnoc is a leading player in both sectors.

JBIC has been strengthening its relationship with Adnoc through a series of MOUs in the oil and gas, and environmental sectors. The latest MoU focuses on decarbonization, energy transition, and energy efficiency to address global challenges, and aims to promote collaboration between Adnoc and Japanese companies in these sectors. The latest financing as well as MoU will strengthen Japan's relationships with Abu Dhabi and the United Arab Emirates, which the Asian country regards as important to its energy resource strategy and the establishment of a supply chain for hydrogen and fuel ammonia.

As a Japanese policy-based financial institution, JBIC provides financial support to Japanese companies in developing and acquiring energy resources by drawing on its various financial instruments for structuring projects.    

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