FAB issues second $20m blue bond, follows successful debut in Aug

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First Abu Dhabi Bank (FAB), the UAE’s largest lender, has issued its second blue bond — a $20m, three-year issuance — marking another step in its efforts to finance ocean and water-related projects that advance climate resilience and environmental sustainability.

The new issuance follows FAB’s inaugural blue bond in August, bringing the bank’s total blue bond issuances to $70m.

Blue bonds, still relatively new in global capital markets, channel investment toward initiatives that conserve marine ecosystems, safeguard coastlines, and promote blue carbon projects.

The bank’s issuance aligns with its 2023 Sustainable Finance Framework and the International Capital Market Association’s Green Bond Principles, ensuring proceeds are dedicated to impactful environmental initiatives.

FAB’s latest blue bond fund to enable water recycling across Abu Dhabi and Al Ain

Funds from the latest bond will support several projects, including wastewater treatment facilities with a daily capacity of 430,000 cubic metres that enable water recycling across Abu Dhabi and Al Ain, and a renewable-powered desalination facility producing 37 million litres per day, supported by 410,000 MWh of renewable energy and 700 MWh of battery storage.

All projects undergo rigorous ESG assessments and ongoing monitoring.

“These initiatives contribute directly to the UAE Water Agenda 2036 and further advance the country’s sustainable development commitments,” FAB said in a statement.

Shargiil Bashir, group chief sustainability officer at FAB, said: “This second Blue Bond shows FAB’s ongoing commitment to supporting water resilience and marine protection across the UAE. With $70m now raised, we’re setting new standards for sustainable finance in the region. This milestone is especially timely, as Abu Dhabi prepares to host the IUCN World Conservation Congress, where FAB is proud to serve as principal and official banking partner.”

Bashir added that FAB’s leadership in sustainable finance enables clients “to directly contribute to climate-positive outcomes through their investments,” positioning the bank as a catalyst for a more resilient and inclusive financial future.

Matt Lawton, head of Impact, Fixed Income at T. Rowe Price, said: “T. Rowe Price Associates is pleased to support First Abu Dhabi Bank’s second blue bond issuance, which marks a significant step forward for sustainable finance in the region. Our investment, made on behalf of client accounts, reflects our commitment to mobilising capital for advancing the blue economy.”

The bank said its latest blue bond reflects growing collaboration between the public and private sectors to drive climate-resilient infrastructure and sustainable economic growth in the UAE and beyond.