First Abu Dhabi Bank (FAB) has announced the issuance of its second Blue Bond, a $20 million three-year instrument. This follows the bank’s inaugural Blue Bond in August 2025, bringing FAB’s total Blue Bond issuances to $70 million. The bank said the proceeds will fund projects aimed at improving ocean and water sustainability.
Blue Bonds are financial instruments intended to support initiatives that conserve marine resources, protect coastlines, and enhance blue carbon ecosystems. FAB stated that these bonds align with its Sustainable Finance Framework 2023 and the ICMA Green Bond Principles.
Funds from this latest issuance will support several projects. These include wastewater treatment facilities in Abu Dhabi and Al Ain with a daily capacity of 430,000 cubic meters for irrigation purposes, as well as a new desalination facility producing 37 million liters per day using renewable energy sources and battery storage. The bank emphasized that all projects undergo strict ESG risk assessment and monitoring.
The initiatives are aligned with national strategies such as the UAE Water Agenda 2036, aiming to advance environmental sustainability commitments.
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 USD 70 million 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 and an active partner in shaping the blue economy agenda.
At IUCN, discussions will focus on the future of the blue economy, and FAB is honored not only to contribute as a partner but also to lead through tangible actions, as demonstrated by this issuance. This milestone reflects our leadership in sustainable finance and our determination to create tangible environmental impact. Importantly, it also enables our clients to directly contribute to climate-positive outcomes through their investments. By mobilising capital toward climate-resilient infrastructure, we are shaping a more inclusive and sustainable financial future where both institutions and their clients play a critical role in driving environmental progress.”
Matt Lawton, Head of Impact, Fixed Income at T. Rowe Price commented: “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 mobilizing 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. We believe this transaction sets a new standard for how capital markets can drive positive environmental and social impact in the UAE and beyond.”
FAB said it remains committed to enabling collaboration between public and private stakeholders for water conservation efforts both within the UAE and internationally.
