First Abu Dhabi Bank (FAB) has issued its second “blue bond,” bringing its total issuance of the sustainability-linked instruments to $70 million so far this year.
Blue bonds are a growing segment within sustainable finance, designed to support initiatives that preserve marine ecosystems and improve water management. FAB’s issuances align with its broader sustainable finance framework.
According to UAE state news agency WAM, FAB’s latest offering is a $20 million, three-year blue bond listed on the Abu Dhabi Securities Exchange. The bank has not disclosed the client’s identity or detailed financial terms.
This follows FAB’s earlier HKD 390 million ($50 million) five-year blue bond issued in August through a private placement.
Proceeds from the issuances will fund several key projects, including wastewater treatment plants with a combined capacity of 430,000 cubic metres per day, supporting irrigation water recycling in Abu Dhabi and Al Ain.
Funds will also be directed toward a renewable-energy-powered desalination facility capable of producing 37 million litres of water daily, supported by 410,000 megawatt-hours of clean energy and 700 MWh of battery storage annually.
FAB said these projects contribute directly to the UAE Water Agenda 2036, reinforcing national commitments to sustainability and environmental resilience.
Shargiil Bashir, Group Chief Sustainability Officer at FAB, noted that the bank’s strategy focuses on mobilising capital to develop climate-resilient infrastructure and promote sustainable economic growth.
In 2023, FAB announced plans to expand its sustainable finance portfolio by 80 percent, reaching $135 billion, as part of its efforts to accelerate the shift toward a low-carbon economy and generate wider social impact.
Abu Dhabi is preparing to host the IUCN World Conservation Congress from October 9 to 15 this year, ahead of the UN Water Conference scheduled for December 2026.
FAB’s shares closed 1 percent lower at AED 16.36 on Thursday but remain up 30 percent year-to-date, reflecting continued investor confidence in the bank’s long-term sustainability strategy.
