TODAY: Acwa Power is raising a second sukuk issuance + Turkey’s EV sector is getting a financial boost from EBRD
Good morning, friends. The deluge of news is showing no signs of slowing down and we have a packed issue for you with a heavy serving of finance news.
THE BIG CLIMATE STORIES- Saudi Arabia’s Acwa Power plans to raise up to SAR 1.8 bn through its second sukuk issuance — part of a wider SAR 5 bn sukuk program — after a maiden SAR 2.8 bn issuance in 2021. Elsewhere, Turkey’s EV sector is getting a financial boost from the European Bank for Reconstruction and Development and Ford is moving forward with establishing an EV battery production facility in the country.
^^ We have chapter and verse on this story and more in the news well, below.
THE BIG CLIMATE STORY OUTSIDE THE REGION- Central bank leaders say climate is not their purview: Some of the world’s top central bankers voiced concerns at a Stockholm conference of central bankers yesterday regarding expectations that their institutions address climate change and “other important social issues of the day” even as they work overtime to cool inflation.
Our soundbite of choice? US Federal Reserve chair Jerome Powell saying the Fed “will not be a climate policymaker.” The story is attracting coverage in the international business press: Reuters | Financial Times | Washington Post
And France’s Danone is in the hot seat, with three environmental groups announcing on Monday their intention to sue the food company over alleged failure to reduce its plastic footprint and take action under a 2017 French law that makes environmental monitoring compulsory for large French companies and their supply chains. Danone — named one of the world’s top ten plastic polluters in a December brand audit (pdf) — strongly refutes the claims. The story is being picked up by the international press: Guardian | New York Times
CORRECTION- In our first major brain fog moment of 2023, we mistakenly referred to Adnoc as KSA-based in yesterday’s issue even though the first two letters of the company acronym clearly stand for Abu Dhabi. We have amended the incorrect references on our website, and will make sure to down a shot of espresso before dispatch henceforth.
WATCH THIS SPACE #1- Jordan kicks off EBRD’s new Paris Agreement alignment mission: Jordan’s Bank Al-Etihad received a USD 35 mn loan from the European Bank for Reconstruction and Development (EBRD) after becoming the first to sign up to the international lender’s Paris Agreement alignment methodology, according to a statement. The new methodology aims to prompt the EBRD’s 300+ partner financial institutions to implement their own individual green transition plans — with the ultimate goal of limiting global warming to 1.5°C. The EBRD began implementing a “full alignment” of its work and portfolio with the goals of the Paris Agreement as of 1 January 2023.
WATCH THIS SPACE #2- Goldman Sachs Asset Management reached final close on its USD 1.6 bn first private equity fund that will invest in climate-focused companies, it said in a statement yesterday. The Horizon Environment and Climate Solutions fund — launched in 2021 — provides “growth capital” to companies working in sectors including clean energy, sustainable transport, waste, and sustainable agriculture, the statement says. So far, the fund has poured a combined USD 1 bn in 12 investments, with each ticket size ranging between USD 80-90 mn, Goldman Sachs Asset Management’s head of sustainable investing for private markets Ken Pontarelli tells Reuters.
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CLIMATE DIPLOMACY- Italy and Tunisia are studying the requirements needed to launch an interconnection project to exchange solar-generated energy between the two countries, Italy’s ambassador to Tunisia and Tunisia’s economy and planning minister said during a meeting on Monday, Tunisie Telegraph reports.
Background: The 600 MW power line — jointly developed by Italy-headquartered transmission operator Terna and Tunisia’s grid operator STEG — will stretch over 200 km between Castelvetrano in Italy’s province of Trapani to Tunisia via the Strait of Sicily, according to a statement by Terna. The European Commission’s Connecting Europe Facility will be earmarking EUR 307 mn for the project, according to Reuters and the total investment size of the interconnector is expected to total some EUR 850 mn, Terna notes in its statement.
CIRCLE YOUR CALENDAR-
UAE renewable energy firm Masdar will host Abu Dhabi Sustainability Week from Saturday, 14 January to Saturday, 21 January. The event will gather eight presidents and prime ministers and 30k participants in a series of conferences and summits including the Atlantic Council’s Global Energy Forum, the World Future Energy Summit, Masdar’s Green Hydrogen Summit, The International Renewable Energy Agency’s Youth Forum, and the Abu Dhabi Sustainable Finance Forum.
The UAE is hosting the Atlantic Council’s Global Energy Forum on Saturday, 14 January and Sunday, 15 January in Abu Dhabi. The forum will discuss the ongoing global energy crisis and its impact on the green transition, energy security, and decarbonization.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.