Abu Dhabi – Mubasher: First Abu Dhabi Bank (FAB) has issued a HKD 390 million ($50 million) Blue Bond, marking the first-ever Blue Bond issued by a financial institution in the Gulf countries.
The five-year issuance anchors FAB’s position in sustainable finance and aligns with the UAE’s commitment to the strategic protection of vital water resources and the blue economy, according to a press release.
Issued via a private placement, the offering was backed by an Article 9 (Dark Green) investor who was seeking a specific blue-labelled instrument.
The Blue Bond is part of FAB’s Sustainable Finance Framework 2023 and International Capital Market Association Green Bond Principles. It boosts the UAE Water Agenda 2036 to promote innovation and sustainable infrastructure across critical marine ecosystems.
FAB was supported by Crédit Agricole Corporate and Investment Bank as dole dealer in the execution of this transaction.
Shargiil Bashir, Chief Sustainability Officer at FAB, said: “This Blue Bond issuance is a defining milestone for FAB and a first for any financial institution in the Gulf. It reflects our conviction that banks must do more than finance the future and we must actively shape it with the tools available to us.”
“By directing capital to protect vital water resources and marine ecosystems, FAB is setting a precedent for sustainable finance in the region,” Bashir added.
The transaction aligns with the country’s broader environmental objectives, particularly as Abu Dhabi prepares to host the International Union for Conservation of Nature (IUCN) Congress in October 2025, and as the UAE welcomes the United Nations Water Conference in December 2026.
Blue bonds are a growing category of sustainable finance instruments, designed to advance water-related environmental objectives.
In the first half (H1) of 2025, FAB logged net profits after tax valued at AED 10.65 billion, up 26% year-on-year (YoY) from AED 8.42 billion.
