First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates by total assets, has successfully priced a €750 million three-year green bond, reinforcing its commitment to sustainable finance and environmentally focused investments.
The bond was issued at par with a coupon of 3.5302% and a reoffer yield of 3.535%, priced at mid-swap plus 75 basis points. Initial Price Thoughts (IPTs) for the benchmark senior unsecured Regulation S offering were in the range of mid-swap plus 100–105 basis points, highlighting strong investor demand that enabled tighter final pricing.
Strong Investor Demand Drives Oversubscription
The green bond attracted significant interest from global investors.
According to the bank, the order book exceeded €1.4 billion at its peak, excluding Joint Lead Manager (JLM) participation, before closing at approximately €1.1 billion. The strong demand demonstrates growing investor appetite for sustainable fixed-income products and confidence in FAB’s credit profile.
The issuance comes under the bank’s US$20 billion Euro Medium Term Note (EMTN) Programme and is expected to be listed on the London Stock Exchange Main Market.
High Credit Ratings Support Investor Confidence
The green bond is expected to receive ratings aligned with FAB’s existing credit profile:
- Aa3 from Moody’s Investors Service
- AA- from S&P Global Ratings
- AA- from Fitch Ratings
These ratings position the bond among the higher-quality investment-grade debt instruments available in international markets.
Funding Green and Sustainable Projects
FAB stated that an amount equivalent to the net proceeds raised through the bond issuance will be allocated toward financing or refinancing projects classified as eligible under the bank’s Sustainable Finance Framework.
The funds will support projects categorized as “Green,” which may include investments in:
- Renewable energy
- Energy efficiency
- Sustainable infrastructure
- Clean transportation
- Climate resilience initiatives
- Environmentally sustainable development projects
The issuance reflects the growing role of financial institutions in mobilizing capital for sustainability-focused investments and supporting global climate objectives.
Return to Debt Markets Following Regional Stability
The green bond marks FAB’s return to international debt markets following improved regional sentiment after the announcement of the US-Iran peace agreement, which helped ease geopolitical tensions in the Middle East.
The stabilization of regional markets has encouraged issuers to access global capital markets while investors continue seeking high-quality sustainable investment opportunities.
Recent Fundraising Activity
The latest green bond follows FAB’s successful debt market transaction earlier this year.
In May 2026, the bank raised US$700 million through a five-year benchmark sukuk issuance. The Islamic bond was priced at par and carried a semi-annual coupon of 4.859%.
The back-to-back transactions highlight FAB’s active role in international debt markets and its strategy of diversifying funding sources while expanding its sustainable finance portfolio.
Sustainable Finance Continues to Gain Momentum
Green bonds have become an increasingly important financing tool for banks, corporations, and governments seeking to fund environmentally responsible projects.
Globally, demand for sustainable debt instruments continues to grow as investors incorporate environmental, social, and governance (ESG) considerations into portfolio decisions.
For FAB, the latest issuance strengthens its position as a key participant in the sustainable finance ecosystem while supporting the UAE’s broader ambitions around climate action, energy transition, and sustainable economic development.
As green finance markets continue to mature, issuances such as this are expected to play a crucial role in directing capital toward projects that contribute to long-term environmental and economic resilience.
