Fist Abu Dhabi Bank Issues Second Blue Bond

Marking a significant milestone for its pioneering blue finance, First Abu Dhabi Bank (FAB) on Thursday said that it has successfully issued its second Blue Bond, a $20 million 3-year Blue Bond, thus bringing its total Blue Bond issuances to $70 million.

This comes shortly after FAB’s inaugural Blue Bond in August 2025, underscoring the strong momentum behind its commitment to financing ocean and water-related projects that support climate resilience and environmental sustainability.

Blue Bonds remain a nascent and impactful instrument globally, designed to promote investment in initiatives aiming to conserve marine resources, protect coastlines, and enhance blue carbon ecosystems.

Aligned with FAB’s Sustainable Finance Framework 2023 and ICMA Green Bond Principles, net proceeds will exclusively support landmark water and marine projects, including wastewater treatment facilities now delivering a daily capacity of 430,000 cubic metres, enabling water recycling for irrigation across Abu Dhabi and Al Ain, and a newly funded desalination facility producing 37 million litres per day, powered by renewable energy sources (410,000 MWh per year) and 700 MWh of battery storage.

All projects are subject to rigorous ESG risk assessment and ongoing monitoring to guarantee environmental and social impact. These initiatives contribute directly to the UAE Water Agenda 2036 and further advance the country’s environmental and sustainable development commitments.

New Benchmark

Shargiil Bashir, Group Chief Sustainability Officer at FAB, said that the bank’s $70 million issuance sets a new benchmark for sustainable finance in the region.

He noted that the milestone comes as Abu Dhabi prepares to host the IUCN World Conservation Congress, where FAB will serve as Principal and Official Banking Partner and an active partner in shaping the blue economy agenda.

Bashir highlighted that the discussions at the Congress will centre on the future of the blue economy, and FAB’s participation reflects its leadership in sustainable finance through tangible action.

“The bank’s initiatives demonstrate its determination to generate measurable environmental impact while enabling clients to support climate-positive outcomes through their investments,” Bashir averred.

He said that FAB aims to mobilise capital toward climate-resilient infrastructure and promote an inclusive and sustainable financial future in which institutions and clients work together to advance environmental progress.

By supporting priority projects for water and marine conservation, and fostering strong collaboration between public and private stakeholders, FAB’s latest issuance demonstrates the positive impact that financial innovation can deliver for nature and society.

In partnership with investors and the wider market, FAB remains committed to enabling a resilient, inclusive, and sustainable future for the UAE and beyond.

Matt Lawton, Head of Impact, Fixed Income at T. Rowe Price, said that the investment, made on behalf of client accounts, reflects their 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,” Lawton added.