FAB enters the blue bond market: First Abu Dhabi Bank (FAB) issued a five-year HKD 390 mn (USD 50 mn) blue bond through a private placement, marking the first such issuance by a Gulf lender, it said in apress release. The offering was anchored by an unnamed “dark green” investor — which buys strictly into sustainable assets — looking for a water-linked instrument, the statement read.

SOUND SMART- A blue bond is a type of debt instrument issued to finance projects that protect, restore, or sustainably manage oceans, marine ecosystems, and freshwater resources. These bonds fund initiatives such as marine conservation, sustainable fisheries, clean shipping, coastal resilience, and port decarbonization.

Where’s the money going? Eligible initiatives in FAB’s blue asset pool include sustainable water management, climate adaptation projects, sustainable fisheries and aquaculture management, and the protection of terrestrial and aquatic biodiversity.

Not the first blue paper from the UAE: Port operator DP World issued the MENA region’s first corporate bluebond worth USD 100 mn back in December of last year. Proceeds were directed toward sustainable port development and marine ecosystem projects.

UAE ♥️ Asian capital: The bond allows FAB to diversify its funding sources and, being denominated in HKD, is expected to attract primarily Asian investors. It’s not the first lender to tap Asian capital as of late, with Emirates NBD returning to the Dim Sum market after more than a decade with a CNY 1 bn debt issuance.

ADVISORS- FAB tapped Crédit Agricole Corporate and Investment Bank as the sole dealers on the transaction.

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