FAB: The First Bank in the Gulf to Invest in Blue Bonds

The UAE is one of the many countries that signed the Paris Agreement, legally binding the entire country to reach net zero by 2050.

First Abu Dhabi Bank (FAB), supported by Crédit Agricole Corporate and Investment Bank, has issued a US$50m five year Blue Bond.

This makes the bank the first ever issuer of a Blue Bond in the Gulf Countries, which FAB says cements the company's leadership in sustainable finance.

Shargiil Bashir, Chief Sustainability Officer at FAB said: ‎“This Blue Bond issuance is a defining milestone for FAB and a first for any financial institution ‎in the Gulf. 

“It reflects our conviction that banks must do more than finance the future and we ‎must actively shape it with the tools available to us.”

What does the investment mean?

The investment was made to align with FAB’s Sustainable Finance Framework and the International Capital Market Association Green Bond Principles.

It was issued through a private placement and anchored by an Article 9 investor that was looking for a blue labelled instrument.

The bond aims to support the UAE Water Agenda 2036, the programme wants to promote innovation and sustainable infrastructure across critical marine ecosystems.

Alongside the agenda FAB says the investment aligns with wider environmental objectives set by the country such as the preparation to host the International Union for Conservation of Nature in October 2025.

The UAE is also set to welcome the United Nations Water Conference in December 2026.

Eligible projects for the Blue Bond include:

• Sustainable water management 
• Climate change adaptation projects
• Sustainable management of fisheries and aquaculture
• Conservation of terrestrial and aquatic biodiversity

Shargiil continues: “By directing capital to protect vital water ‎resources and marine ecosystems, FAB is setting a precedent for sustainable finance in the ‎region. 

“This marks another achievement in our journey to drive sustainable development in ‎the UAE and beyond, and it also reinforces the nation’s global leadership on climate and ‎biodiversity, as it prepares to host two major summits, the IUCN Congress in Abu Dhabi and the ‎UN Water Conference in 2026 and we are privileged to be at the forefront of this critical ‎transition”.‎

What are Blue Bonds?

FAB says that blue Bonds are a growing category within sustainable finance, with the aim to advance and promote  water-related environmental objectives.

Similarly to green bonds the investment is designated to fund projects that align with specific marine and ocean sustainable development goals.

The International Finance Corporation says that blue bonds raise finances to invest in water and water waste management, reducing ocean plastic pollution, marine ecosystem restoration, sustainable shipping, eco-friendly tourism and renewable energy.

This area of sustainability has historically been underfunded despite global significance, according to FAB.

Tanguy Claquin, Global Head of Sustainability, Crédit Agricole Corporate and Investment Bank: ‎‎“Crédit Agricole CIB is proud to support First Abu Dhabi Bank as Sole Dealer on this landmark ‎Blue Bond – a signal of the region’s increasing focus on aligning financial innovation with ‎global environmental priorities. 

“First Abu Dhabi Bank continues to set an ambitious standard ‎and pace for sustainability in the Middle East, and this transaction reflects the growing ‎appetite from global asset managers to direct capital towards new frontiers in sustainable ‎finance, such as the blue economy, nature and biodiversity.”‎

What other steps is FAB taking towards a sustainable future? 

FAB is investing in various projects to support the UAE’s national drive to reach net zero by 2050, aligning with the Paris Agreement.

In 2021 the bank joined the Net-Zero Banking Alliance with the aim to support clients in their transition towards a climate neutral economy, providing financing and advisory services.

Alongside its participation in the alliance the bank joined the Steering Group and is now the elected chair, overseeing the decision making and strategy of the group.

By 2030 the bank says it is aiming to lend and invest $US75bn to facilitate sustainable business, alongside US$10bn into sustainable activities by 2026.

To reduce the bank's operational carbon footprint it reports to be reducing Scope 1 and 2 emissions using decarbonisation techniques like energy efficiency, renewable energy, EVs and carbon offsetting.

Shargiil says “As the largest bank in the UAE, FAB has taken decisive steps as a regional pacesetter in the financial industry to bind both ambition and action together to accelerate the pace of positive environmental change. 

“As the first bank in the MENA region to have committed to a target of net-zero emissions by 2050, we're making advances across our own operations in addition to walking alongside our clients as their strategic partner to ensure they can achieve their climate goals.”