First Abu Dhabi Bank 5Y low-carbon energy bond +95bps area

First Abu Dhabi Bank 5Y low-carbon energy bond +95bps area

First Abu Dhabi Bank (FAB), the UAE's largest bank by assets, has issued a USD-denominated 5-year low-carbon energy bond. The bond, which is part of FAB's $20 billion Euro Medium Term Note Programme, was issued today, marking the first GCC mandate of the month and the first ESG-focused fixed income investor call of the year [2].

The bond, rated Aa3 by Moody's, AA- by S&P, and AA- by Fitch, was arranged by Bank of China, Barclays, Citi, Crédit Agricole Corporate and Investment Bank, HSBC, and Standard Chartered Bank as Joint Lead Managers and Bookrunners. The proceeds from the bond will be used exclusively to refinance Eligible Nuclear Power Generation Projects in line with FAB's Sustainable Finance Framework [2].

The bond was issued with a spread of 95 basis points over the relevant benchmark, reflecting the bank's strong credit profile and the demand for ESG-focused investments. This issuance is part of FAB's broader strategy to support sustainable development and align with the United Nations Sustainable Development Goals (SDGs) [3].

FAB's commitment to sustainable finance is evident in its recent issuance of a HKD 390 million (USD 50 million) 5-year Blue Bond, which was the first-ever Blue Bond issued by a financial institution in the Gulf countries [4]. This bond, aligned with FAB's Sustainable Finance Framework 2023 and the International Capital Market Association Green Bond Principles, supports projects such as sustainable water management, climate change adaptation, and biodiversity conservation [4].

The issuance of this 5-year low-carbon energy bond is a significant milestone for FAB and the broader GCC region, demonstrating the growing demand for sustainable finance solutions and the role of banks in driving sustainable development [3].

References:
[1] https://www.zawya.com/en/special-coverage/focus-global-wealth-funds/turkiye-wealth-fund-mandates-banks-for-us-dollar-bond-issuance-fbomenqk
[2] https://www.zawya.com/en/capital-markets/bonds/uaes-fab-launches-first-september-gcc-mandate-eyes-esg-bonds-bt8jldyy
[3] https://www.zawya.com/en/special-coverage/zawya-green/bahrains-bank-abc-mobilises-record-28bln-in-sustainable-finance-ae3ats65
[4] https://www.zawya.com/en/capital-markets/bonds/fab-issues-gulf-regions-first-ever-blue-bond-by-a-bank-ngpqtgdq