Is UAE oil giant ADNOC planning a ‘green’ bond?

Is UAE oil giant ADNOC planning a ‘green’ bond?

Dubai: Abu Dhabi National Oil Company (ADNOC) is considering a sale of green bonds for the first time, as companies and governments in the Gulf increasingly look to tap investors in sustainable assets. The oil company is speaking to banks about a possible green issuance. The company may opt instead for sustainability-linked bonds, which provide more flexibility than green bonds because they’re not tied to specific projects. The company declined to comment. ADNOC’s discussions are separate from its plans to raise about $3 billion to $5 billion from conventional bonds this year. In October, the UAE became the first Gulf state to commit to neutralizing planet-warming emissions within its borders. It aims to do that by 2050. ADNOC is a crucial part of the UAE’s net-zero target. The company is planning to spend billions of dollars on technology to capture carbon and manufacture hydrogen, a fuel which emits only water vapor when burned. It’s also involved in the UAE’s strategy to ramp up solar power through renewable-energy firm Masdar. Egypt sold the Middle East’s first sovereign green bond in late 2020. Saudi Arabia and Qatar’s governments are considering following suit, as is the Saudi sovereign wealth fund. Like those of