In 2022, First Abu Dhabi Bank (FAB) played a leading role in financing the 500-megawatt Zarafshan wind project, the first wind power project in Uzbekistan and the largest renewable project in Central Asia to date (as of December 2023). FAB acted as green loan coordinator, structuring bank, bookrunner and mandated lead arranger on a USD 102 million green loan facility. The facility was backed by Etihad Credit Insurance (ECI), UAE’s export credit agency. The project also received over USD 175 million in long-term loan facilities from four development finance institutions.
The wind farm is expected to avoid 1.1 million tonnes of CO2 emissions per year, power 500,000 homes, and contribute to Uzbekistan’s target of generating 25% of its electricity from renewables by 2030.
Zarafshan is the first wind project financed by FAB. The bank’s underwriting of half of the ECI-backed facility counts towards its goal to lend, invest, and facilitate business of USD 75 billion by 2030 for environmental and socially responsible activities.
Read more on FAB’s net-zero targets here.
This case study was originally published in the Net-Zero Banking Alliance 2023 Progress Update (December 2023).
Disclaimer: NZBA shares case studies to promote member banks’ awareness of new approaches, tools, products, services, and transactions related to financing the transition to net zero. Featuring a case study naming a particular bank does not represent an endorsement of all actions from that bank.