First Abu Dhabi Bank's three-year digital green bond raised AED 1 billion and settled through Euroclear. The bank says proceeds will support environmental projects and efforts to address climate challenges.
Euroclear settled First Abu Dhabi Bank's bond on 15 October, two days after it was priced at a fixed rate of 5.75%. The three-year issue matures on 15 October 2029. It is the first fully digitally issued green bond in the Middle East and North Africa, The National reported.
The AED 1 billion raised is earmarked for projects with positive environmental benefits or for work addressing climate challenges, the bank said. Early marketing described the deal as a benchmark-sized local-currency issue, with a spread of 75 basis points over the three-year AED swap benchmark. Final terms set the rate at 5.75%, with AED 1 billion in principal.
Funding and digital infrastructure
This is First Abu Dhabi Bank's second digital bond listed on the Abu Dhabi Securities Exchange. Its first was issued in 2025. The bank says it is the only issuer with digital bonds listed on the exchange.
The bank also finances sustainable and transition projects. By the end of the first half of 2026, it had provided AED 395 billion in this financing, reaching 79% of its AED 500 billion target for 2030.
Elsewhere in the UAE banking sector, lenders are competing for deposits amid faster credit growth, a separate development from this capital-markets deal, according to a separate report.
How the issue was arranged
Euroclear's Digital Financial Market Infrastructure, or D-FMI, uses distributed ledger technology to support the issuance and settlement of fully digital securities. The platform also handles their distribution. It connects with existing secondary-market services, linking digital transactions to established market infrastructure.
The bond was issued under FAB's USD 30 billion medium-term euro note programme. Fitch assigned the notes a long-term rating of AA- with a stable outlook, matching the bank's rating. They are direct obligations of the bank. The notes are unconditional and unsecured, and rank equally with the bank's other senior unsecured obligations. Payments in AED are scheduled twice a year.
First Abu Dhabi Bank and Standard Chartered structured the bond. Emirates NBD and First Abu Dhabi Bank served as joint lead managers. HSBC also held that role. Industrial and Commercial Bank of China (Asia) Limited and Standard Chartered were joint lead managers as well. Argaam reported the roles.
Citibank N.A., London Branch, acted as financial agent and agent for the fully digitally issued bonds. Dentons & Co advised the issuer. Allen & Overy Shearman Sterling advised the joint lead managers.
