FAB issues $50 million 5-year Blue Bond

First Abu Dhabi Bank (FAB) has successfully issued $50 million 5-year Blue Bond. This transaction represents the first-ever Blue Bond issued by a financial institution in the Gulf countries. This landmark issuance cements FAB’s leadership in sustainable finance and aligns with the UAE’s commitment to the strategic protection of vital water resources and the blue economy.

The bond, issued via a private placement, was anchored by an Article 9 (Dark Green) investor who was seeking specific blue labelled instrument. The Blue Bond is aligned with FAB’s Sustainable Finance Framework 2023, and International Capital Market Association Green Bond Principles.

The Blue Bond issuance supports the UAE Water Agenda 2036 to promote innovation and sustainable infrastructure across critical marine ecosystems. It also 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 and promote water-related environmental objectives. As stewards of capital, financial institutions play a key role in mobilising funding toward the protection of marine ecosystems and sustainable water management, areas historically underfunded despite their global significance.

WAM