First Abu Dhabi Bank (FAB) has issued a HKD 390 million (USD 50 million) blue bond, marking the first time a financial institution in the Gulf region has launched such an instrument. The five-year bond was placed privately and targeted an Article 9 (“Dark Green”) investor interested in blue-labelled financial products.
Blue bonds are part of a growing segment in sustainable finance aimed at supporting water-related environmental goals. FAB’s issuance is aligned with its Sustainable Finance Framework 2023 and adheres to the International Capital Market Association Green Bond Principles.
The proceeds from this bond will fund projects that support the UAE Water Agenda 2036, which aims to foster innovation and sustainable infrastructure across marine ecosystems. This initiative comes as Abu Dhabi prepares to host major international events, including the International Union for Conservation of Nature (IUCN) Congress in October 2025 and the United Nations Water Conference in December 2026.
Eligible projects for funding through FAB’s blue asset pool include sustainable water management infrastructure, climate change adaptation efforts like wetland and coral reef conservation, sustainable fisheries and aquaculture management, and biodiversity conservation.
Crédit Agricole Corporate and Investment Bank acted as Sole Dealer for this transaction.
Shargiil Bashir, Chief Sustainability Officer at FAB said: “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. By directing capital to protect vital water resources and marine ecosystems, FAB is setting a precedent for sustainable finance in the region. This marks another achievement in our journey to drive sustainable development in the UAE and beyond, and it also reinforces the nation’s global leadership on climate and biodiversity, as it prepares to host two major summits, the IUCN Congress in Abu Dhabi and the UN Water Conference in 2026 and we are privileged to be at the forefront of this critical transition”.
Tanguy Claquin, Global Head of Sustainability at Crédit Agricole Corporate and Investment Bank stated: “Crédit Agricole CIB is proud to support First Abu Dhabi Bank as Sole Dealer on this landmark Blue Bond – 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.”
