FAB Leads With ESG Investor Roadshow And Low-Carbon Bond Mandate

First Abu Dhabi Bank, the UAE's largest lender by assets, today instructed a consortium of global banks to coordinate a series of investor calls focused exclusively on environmental, social and governance fixed‐income opportunities. These discussions pave the way for the offering of a benchmark 5‐year, USD‐denominated, Regulation S low‐carbon energy bond, to be issued under FAB's USD 20 billion Euro Medium Term Note programme.

The institutions enlisted as joint lead managers and bookrunners include Bank of China, Barclays, Citi, Crédit Agricole Corporate and Investment Bank, First Abu Dhabi Bank itself, HSBC and Standard Chartered. This initiative marks the first formal mandate out of the Gulf Cooperation Council in September, coming just after the US Labor Day holiday when issuance activity typically picks up.

FAB's move signals a heightened commitment to sustainable financing as it channels capital toward low‐carbon energy. The choice of a Regulation S, fixed‐rate offering positions the bond primarily for offshore investors, aligning with global demand for ESG-aligned instruments.

This development arrives shortly after FAB's historic issuance of the Gulf's first Blue Bond-a five‐year, HKD 390 million instrument designed to finance marine and water‐related sustainability projects. The Blue Bond, structured as a private placement, was anchored by an Article 9 investor and executed under FAB's Sustainable Finance Framework 2023, aligning with ICMA Green Bond Principles.

By introducing a low‐carbon energy bond, FAB expands its ESG product suite beyond water‐focused finance to energy‐related sustainability, reflecting a nuanced understanding of diverse green capital needs. This broadened scope serves institutional investors keen to support capital allocated explicitly to lower‐carbon energy infrastructure or transition projects.

The bank's ratings-Aa3, AA‐ and AA‐, all with stable outlooks-underscore its strong credit profile and ability to execute such ESG-linked mandates effectively. The participation of a full complement of global lead banks further signals confidence in FAB's execution capacity and the market's appetite for sustainable issuances from the region.

As the Gulf emerges as a growing centre for sustainable debt issuance, FAB appears to be sharpening its leadership. The low‐carbon energy bond follows the Blue Bond milestone and demonstrates strategic pacing: first anchoring FAB's ESG credibility with a water‐focused issue, then broadening into energy‐oriented ESG issuance ahead of heightened market activity following Labor Day.

Market watchers will likely observe key aspects as investor calls proceed: clarity on use‐of‐proceeds, certification of“low‐carbon energy” under global ESG standards, pricing relative to conventional benchmarks, and feedback from investors on the depth of demand for this offering.

FAB has proven adept at integrating ESG considerations into each transaction, with all credit approvals evaluated against its ESG Risk Framework before attaining sustainable finance classification. That process, combined with its net-zero commitment by 2050 and history of innovative sustainability transactions in the region, positions it to capitalise effectively on growing ESG momentum in global debt markets.

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