The largest bank in the UAE, First Abu Dhabi Bank (FAB), has launched its second blue bond, amounting to $20 million over three years. This initiative represents a continued commitment to funding projects related to ocean and water resources that enhance climate resilience and environmental sustainability.
This new bond follows FAB’s initial blue bond issued in August, bringing the total amount raised through blue bonds to $70 million.
Blue bonds, which are still emerging in global financial markets, direct investments towards efforts that protect marine ecosystems, preserve coastlines, and foster blue carbon initiatives.
The issuance of this bond aligns with FAB’s 2023 Sustainable Finance Framework and adheres to the Green Bond Principles established by the International Capital Market Association, ensuring that the funds are allocated to significant environmental projects.
Funding Water Recycling Initiatives in Abu Dhabi and Al Ain
Proceeds from the new bond will be utilized for various projects, including wastewater treatment facilities capable of processing 430,000 cubic meters daily, promoting water recycling in Abu Dhabi and Al Ain. Additionally, a renewable energy-powered desalination plant will produce 37 million liters of fresh water each day, supported by 410,000 MWh of renewable energy and 700 MWh of battery storage.
Each project is subject to thorough ESG evaluations and continuous oversight.
FAB remarked, “These projects play a vital role in supporting the UAE Water Agenda 2036 and further enhancing the nation’s commitment to sustainable development.”
Shargiil Bashir, the group chief sustainability officer at FAB, noted, “This second Blue Bond exemplifies FAB’s dedication to enhancing water resilience and marine conservation in the UAE. With $70 million raised, we are establishing new benchmarks for sustainable finance in the region. This achievement is particularly significant as Abu Dhabi gears up to host the IUCN World Conservation Congress, where FAB is honored to be the principal and official banking partner.”
Bashir emphasized that FAB’s leadership in sustainable finance allows clients “to make direct contributions to climate-positive impacts through their investments,” positioning the bank as a key player in fostering a more resilient and inclusive financial ecosystem.
Matt Lawton, head of Impact, Fixed Income at T. Rowe Price, expressed, “T. Rowe Price Associates is proud to endorse First Abu Dhabi Bank’s second blue bond issuance, representing a notable advancement in sustainable finance within the region. Our investment, made on behalf of our clients, demonstrates our commitment to channeling capital into the blue economy.”
The latest blue bond signifies an increasing partnership between public and private sectors aimed at promoting climate-resilient infrastructure and fostering sustainable economic development in the UAE and beyond.