FAB Issues $20 Million Blue Bond To Enhance Climate Resilience And Marine Conservation Efforts

First Abu Dhabi Bank (FAB) has issued its second Blue Bond, valued at US$20 million with a three-year term. This follows their initial Blue Bond launched in August 2025. The bank's commitment to funding ocean and water-related projects is evident, as these initiatives aim to bolster climate resilience and environmental sustainability.

Blue Bonds are emerging as influential tools worldwide. They encourage investment in projects that conserve marine resources, protect coastlines, and enhance blue carbon ecosystems. With this latest issuance, FAB's total Blue Bond offerings now amount to $70 million, marking a significant achievement in the bank's blue finance efforts.

The proceeds from this bond will support key water and marine projects. These include wastewater treatment facilities with a daily capacity of 430,000 cubic metres for irrigation in Abu Dhabi and Al Ain. Additionally, a new desalination plant will produce 37 million litres per day using renewable energy sources.

All projects undergo strict ESG risk assessments and continuous monitoring to ensure they deliver positive environmental and social impacts. These efforts align with the UAE Water Agenda 2036 and advance the country's sustainable development goals.

Shargiil Bashir, Group Chief Sustainability Officer at FAB, stated that their $70 million issuance sets a new standard for sustainable finance in the region. He mentioned that this milestone coincides with Abu Dhabi hosting the IUCN World Conservation Congress, where FAB will play a significant role.

Bashir emphasised that discussions at the congress will focus on the future of the blue economy. FAB’s involvement highlights its leadership in sustainable finance through concrete actions. The bank aims to mobilise capital for climate-resilient infrastructure and promote an inclusive financial future.

Collaboration for Environmental Progress

By supporting priority water and marine conservation projects, FAB demonstrates how financial innovation can benefit nature and society. Their collaboration with public and private stakeholders underscores their commitment to a resilient, inclusive future for the UAE.

Matt Lawton from T. Rowe Price commented on their investment with FAB: "Our investment, made on behalf of client accounts, reflects our commitment to mobilising capital for advancing the blue economy. By partnering with FAB, we are helping to direct funding toward projects that strengthen water resilience and marine protection while also delivering attractive investment opportunities for our clients."

FAB’s initiatives showcase its dedication to generating measurable environmental impact while enabling clients to support climate-positive outcomes through investments. Their efforts highlight how institutions can work together towards environmental progress.

With inputs from WAM