First Abu Dhabi Bank (FAB) has issued a HKD 390 million (USD 50 million) 5-year Blue Bond, marking the first-ever Blue Bond issued by a financial institution in the Gulf countries.

The bond, issued via a private placement, was anchored by a 'Dark Green' investor, who was seeking specific blue labelled instrument. The Blue Bond is aligned with FAB’s Sustainable Finance Framework 2023, and International Capital Market Association Green Bond Principles, according to a statement.

Eligible projects in FAB’s blue asset pool include, amongst others, sustainable water management (e.g. sustainable infrastructure for clean drinking water), climate change adaptation projects (e.g. conservation and rehabilitation of wetlands, mangroves and coral reefs), sustainable management of fisheries and aquaculture and conservation of terrestrial and aquatic biodiversity.

FAB was supported by Crédit Agricole Corporate and Investment Bank as Sole Dealer.

In January 2025, DP World raised $100 million in the MENA region’s first-ever Blue Bond to fund sustainable projects in the maritime and water sectors.

The five-year offering was priced at a 5.25% coupon rate.

(Writing by Seban Scaria; editing by Anoop Menon)
(seban.scaria@lseg.com)