Barakah One Company Awarded For $2.42 Billion Green Refinancing Effort

The AED8.89 billion ($2.42 billion) refinancing of the UAE's Barakah Nuclear Energy Plant has recently been honoured as the ESG Loan Deal of the Year by the Bonds, Loans & Sukuk Middle East Awards, marking a significant achievement in the region's financial and environmental sectors. This accolade was awarded to Barakah One Company, a subsidiary of the Emirates Nuclear Energy Corporation (ENEC), which is instrumental in the financial and commercial dealings of the nuclear project.

The refinancing initiative saw the collaboration of two leading UAE banks, First Abu Dhabi Bank (FAB) and Abu Dhabi Commercial Bank (ADCB), with FAB taking on the role of Senior Green Coordinator and ADCB as the Green Loan Coordinator. This strategic financial restructuring was notably recognized as the first green loan in both the Middle East and North Africa (MENA) region and Asia, setting a new standard for environmentally conscious financing.

ENEC's Barakah Nuclear Energy Plant is at the forefront of reducing carbon emissions and aiding in the decarbonization of energy-intensive industries within the UAE. With an expected full commercial operation by 2024, the plant will produce 40 terawatt-hours (TWh) of electricity annually, preventing 22.4 million tons of carbon emissions each year.

Mohamed Al Hammadi, ENEC's Managing Director and CEO, expressed that this award highlights the pivotal role nuclear energy plays in advancing the UAE's decarbonization goals and fostering a green economy. The Barakah plant stands as a testament to reliable and efficient clean energy production that bolsters the resilience of the UAE's power grid.

The project not only contributes to environmental sustainability but also generates significant economic value for the UAE. It supports local supply chains and creates employment opportunities, thereby contributing to national development. Nasser Al Nasseri, CEO of Barakah One Company, emphasized nuclear energy's critical role in facilitating a smooth transition to sustainable energy solutions and mitigating climate change risks.

The Bonds, Loans & Sukuk Middle East Awards have been showcasing financial ingenuity in the Middle East since 2014. The awards consider various aspects such as deal size, structure, and borrower background to highlight regional economic prowess and innovative financing solutions. Alongside Barakah One Company, other distinguished UAE entities like Masdar, Mubadala, Majid Al Futtaim, Emirates NBD Bank, and First Abu Dhabi Bank have been recognized for their contributions across different categories.

This recognition underscores the growing importance of sustainable finance in achieving environmental goals while demonstrating the financial viability of large-scale clean energy projects like Barakah. As such projects continue to gain traction, they represent a vital component in the global shift towards sustainable development and climate change mitigation.

With inputs from WAM