Abu Dhabi – First Abu Dhabi Bank (FAB), the UAE’s global bank and one of the world’s largest and safest financial institutions, has successfully issued its second Blue Bond, a USD 20 million 3-year Blue Bond. 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. FAB’s successive issuance reflects its growing ambition to innovate within the sustainable finance space and to lead regional efforts toward a blue economy.
With this second Blue Bond, FAB brings its total Blue Bond issuances to USD 70 million, marking a significant milestone for the bank’s pioneering blue finance. 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 deliver a daily capacity of 430,000 cubic meters, enabling water recycling for irrigation across Abu Dhabi and Al Ain.
- A newly funded desalination facility producing 37 million liters per day, powered by renewable energy sources (410,000 MWh/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.
About the initiatives
These initiatives contribute directly to the UAE Water Agenda 2036 and further advance the country’s environmental and sustainable development 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.”
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, 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.”
