Fitch assigned an AA- rating to First Abu Dhabi Bank's first digital bond. The three-year notes pay 5.75% annually in UAE dirhams.
The rating covers senior unsecured notes issued by First Abu Dhabi Bank ("أبوظبي الأول"), the UAE's largest bank by assets. Fitch ("فيتش") announced the AA- rating on October 14, 2026, matching the bank's own long-term rating. The notes rank equally with FAB's other senior unsecured obligations. Fitch's stable outlook applies to the bank. Fitch's rating announcement identifies the issue as FAB's first digital notes.
The notes have a planned three-year term and are denominated in UAE dirhams. Zawya reported that FAB priced the debut digital AED green bond at 75 basis points above the three-year AED swap benchmark. Settlement is scheduled for October 15, 2026. The annual interest rate is 5.75%, paid every six months.
The bond will be issued under FAB's $30 billion Euro Medium Term Note programme. Fitch said the securities are direct and unconditional obligations of the bank, with no specific assets pledged as security. They rank equally with FAB's other senior unsecured obligations.
This is a capital-markets instrument, not a deposit product. The distinction matters in a banking environment where deposit pricing has also drawn attention, as covered in UAE bank deposit coverage. Deposit offers and bond interest rates are not directly comparable.
The issuance will use distributed ledger technology. Euroclear ("يوروكلير") will handle settlement and ownership transfers. It will also process redemption. EnterpriseAM reported that the notes were expected to list on Abu Dhabi Securities Exchange (ADX).
Emirates NBD Capital and FAB were among the joint lead managers and bookrunners. HSBC and ICBC (Asia) also held those roles. Standard Chartered was another joint lead manager and bookrunner, and acted as settlement and delivery bank.
Zawya described the transaction as FAB's debut digitally native AED green bond. The notes have a three-year tenor and are denominated in local currency. Their planned ADX listing places the deal within the development of the domestic dirham bond market. FAB has also issued conventional debt and Islamic instruments. Reuters reported a five-year $500 million sukuk from the bank.
