FAB Issues $50 Million Blue Bond To Support Sustainable Water Management Initiatives

First Abu Dhabi Bank (FAB) has issued a HKD 390 million ($50 million) Blue Bond with a five-year term. This marks the first Blue Bond by a financial institution in the Gulf region. The issuance underscores FAB's leadership in sustainable finance, aligning with the UAE's focus on protecting water resources and promoting the blue economy.

The bond was issued through a private placement, anchored by an Article 9 (Dark Green) investor seeking blue-labelled instruments. It aligns with FAB’s Sustainable Finance Framework 2023 and International Capital Market Association Green Bond Principles. This initiative supports the UAE Water Agenda 2036, fostering innovation and sustainable infrastructure for marine ecosystems.

The Blue Bond aligns with broader environmental goals, especially as Abu Dhabi prepares for the International Union for Conservation of Nature Congress in October 2025 and the United Nations Water Conference in December 2026. These bonds are part of a growing category aimed at advancing water-related environmental objectives.

Financial institutions play a crucial role in directing funds toward marine ecosystem protection and sustainable water management. Despite their global importance, these areas have historically been underfunded. FAB is committed to accelerating positive environmental action by integrating nature into its agenda and driving impactful capital allocation.

This financial instrument enables capital flows toward projects that protect ocean health and foster long-term resilience. Eligible projects include sustainable water management, climate change adaptation, fisheries management, and biodiversity conservation. Crédit Agricole Corporate and Investment Bank supported FAB as Sole Dealer in this pioneering transaction.

Shargiil Bashir, Chief Sustainability Officer at FAB, stated: "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."

Bashir emphasised that by directing capital to protect vital water resources and marine ecosystems, FAB sets a precedent for sustainable finance in the region. This achievement reinforces the UAE's global leadership on climate and biodiversity as it prepares to host major summits like the IUCN Congress and UN Water Conference.

Tanguy Claquin from Crédit Agricole CIB expressed pride in supporting FAB as Sole Dealer on this landmark Blue Bond. He noted that this transaction signals the region’s increasing focus on aligning financial innovation with global environmental priorities.

Claquin added: "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."

With inputs from WAM