ENEC’s Barakah One Company wins Award for Groundbreaking US$2.42bn Green Refinancing

The AED 8.89 Bn (US$2.42Bn) refinancing of the UAE’s Barakah Nuclear Energy Plant has been selected as the ESG Loan Deal of the Year by the prestigious Bonds, Loans & Sukuk Middle East Awards.

Barakah One Company, the financing and commercial subsidiary of the Emirates Nuclear Energy Corporation (ENEC) achieved the groundbreaking refinancing with the participation of two prominent UAE banks, First Abu Dhabi Bank (FAB) and Abu Dhabi Commercial Bank (ADCB).

The refinancing involved a competitive market process of transformation of the loans into green loan financing, with FAB acting as the Senior Green Coordinator and ADCB as the Green Loan Coordinator. The refinancing was the first green loan in the Middle East and North Africa (MENA) region and Asia to be independently recognized as a green loan facility.

ENEC is playing a key role in driving the reduction of carbon emissions and decarbonizing the UAE’s energy intensive industries through the Barakah project, the Arab World’s first nuclear energy plant.

The Barakah facility, with full commercial operation forecast for later in 2024, will generate 40 terawatt-hours (TWh) of electricity per year while simultaneously preventing the release of 22.4 million tons of carbon emissions.

His Excellency Mohamed Al Hammadi, ENEC’s Managing Director and Chief Executive Officer commented: “ENEC is delighted that the green refinancing of the Barakah project has been recognized as the standout ESG Loan Deal of the Year.

"The award underscores the critical role of ENEC and nuclear energy in accelerating the UAE’s decarbonization efforts and supporting the development of a green economy – which will play a key part in driving future growth and investment.

"The Barakah plant is already the largest source of dispatchable clean electricity in the MENA region, and is providing reliable, efficient, and clean electricity that ensures the resilience of the UAE grid.

"In addition to reducing and preventing harmful carbon emissions, the Barakah Plant is generating substantial economic value in the UAE, establishing opportunities for the local supply chain and creating job opportunities for our people.

"We will continue working with our partners to accelerate the energy transition and unlock value for communities and businesses in the UAE and beyond.”

Nasser Al Nasseri, CEO of Barakah One Company added: “Nuclear energy's importance in facilitating a seamless energy transition and addressing climate change risks is widely acknowledged globally and it's essential that banks, financial institutions, and key decision-makers now recognize the financial viability of nuclear energy projects.

"It is a privilege for us to be recognized with this prestigious award, and to accelerate the energy transition in the UAE and the broader MENA region."

The Bonds, Loans & Sukuk Middle East Awards has been recognizing innovative financial deals in the Middle East region since 2014.

The awards evaluate key deal criteria such as size, structure, tenor, distribution, borrower background, and financing accessibility and showcases regional economic strength and deal-making innovation.

Distinguished UAE entities including Masdar, Mubadala, Majid Al Futtaim, Emirates NBD Bank, and First Abu Dhabi Bank were honoured in various other categories together with Barakah One Company.