First Abu Dhabi Bank (FAB), has issued a HKD 390 million (USD $50 million) 5-year Blue Bond which it said is the first issued by a financial institution in the Gulf countries.
The bank said the bond, issued via a private placement, was anchored by an Article 9 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. The bank said eligible projects in FAB’s blue asset pool include, sustainable water management (e.g. sustainable infrastructure for clean drinking water), climate change adaptation projects (e.g. conservation and rehabilitation of wetlands, mangroves and coral reefs), sustainable management of fisheries and aquaculture and conservation of terrestrial and aquatic biodiversity.
“This Blue Bond issuance is a defining milestone for FAB and a first for any financial institution in the Gulf,” said Shargiil Bashir, Chief Sustainability Officer at FAB. “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.”
Tanguy Claquin, Global Head of Sustainability, Crédit Agricole Corporate and Investment Bank said the bond is a signal of the region’s increasing focus on aligning financial innovation with global environmental priorities. “First Abu Dhabi Bank continues to set an ambitious standard and pace for sustainability in the Middle East, and this transaction reflects the growing appetite from global asset managers to direct capital towards new frontiers in sustainable finance, such as the blue economy, nature and biodiversity.”
