EL7.AI
Macro EconomyMedium•4 November 2026•
4 min read

ADNOC Secures $1 Billion in Green Financing from Japan Bank for International Cooperation

Key Facts

1JBIC’s share of the first loan is about $543 million, and its total co-financing is about $905 million.
2JBIC’s share of the second loan is about $58 million, and its total co-financing is about $97 million.
3The two loan agreements were signed on November 2 and announced on November 4, 2026.

The two parties signed the loan agreements on November 2, according to a JBIC announcement. The facilities are intended to finance projects in the UAE to reduce the environmental impact and carbon emissions of liquefied natural gas production and sales, as well as electricity transmission and distribution networks. This includes networks that support electricity supplies generated from solar and nuclear power. The distinction between JBIC’s share and the total co-financing means the amount provided by the bank itself is less than the total of the two loans.

JBIC’s share of the first loan is about $543 million, out of total co-financing of about $905 million. MUFG, Mizuho and HSBC in Tokyo participated in the loan, according to the bank’s announcement. For the second loan, JBIC’s share is about $58 million, while total co-financing amounts to about $97 million. Mizuho and HSBC in Tokyo helped arrange the second loan. Together, the two loans finance LNG projects and electricity networks under JBIC’s Green Investment credit line, with commercial banks contributing alongside the Japanese government-owned bank.

The stated uses direct financing toward two areas of ADNOC’s UAE operations: reducing the environmental impact and carbon emissions associated with LNG production and sales, and supporting electricity supplies through transmission and distribution networks. JBIC said this includes electricity generated from solar and nuclear power. The bank’s description links financing for electricity infrastructure with diversifying energy sources and reducing ADNOC’s carbon emissions. The uses also cover existing LNG operations, with the loan directed toward projects to mitigate their environmental impact and reduce carbon emissions. The announcement did not specify a separate amount for each project or the share of the two loans allocated to each area.

JBIC said the financing is intended to support ADNOC’s efforts to diversify energy sources and decarbonize, and that it expects it to create opportunities for cooperation between Japanese companies, ADNOC and its subsidiaries. The participation of Japanese and international banks in the two loans provides a channel for joint financing of the projects specified in the announcement. The facilities are part of a credit line established by JBIC and ADNOC in July 2024, worth up to $3 billion, of which JBIC accounts for $1.8 billion. The line is intended to finance decarbonization and energy transition projects, according to the bank’s announcement at the time. The two new loans place the announced financing within an existing credit partnership between the parties, with potential business opportunities for Japanese companies.

JBIC said ADNOC is wholly owned by the Abu Dhabi government and aims to achieve net-zero emissions by 2045. That target provides context for financing carbon-reduction projects linked to LNG operations and electricity networks. In February 2025, the parties signed two other loan agreements under the same credit line, with JBIC’s share capped at $53 million for the first loan and $9 million for the second. The bank said the 2025 financing supported a renewable energy initiative led by the ADNOC Group in Africa. JBIC then hosted a workshop in Dubai on July 31, 2025, to explore cooperation in this area.

More broadly, Japan’s Ministry of Economy, Trade and Industry announced in April 2026 the launch of the POWERR Asia partnership to strengthen the resilience of energy supplies and supply chains in Asia, with financial cooperation of about $10 billion. The ministry said the partnership framework includes financing purchases of crude oil and petroleum products and maintaining supply chains in the region. This comes amid broader Japanese efforts to support energy security, while the JBIC-ADNOC loans focus on specific projects in the UAE. The details announced for the two loans focus on LNG and electricity networks, not financing oil purchases. JBIC’s announcement did not specify a later start date for the loan projects or a financing disbursement schedule.