(MENAFN- The Arabian Post) Greenlogue /AP

First Abu Dhabi Bank has launched its second blue bond, raising USD 20 million through a three-year issuance, to support marine conservation, wastewater recycling and renewable-powered desalination in Abu Dhabi and Al Ain.

With this issuance, FAB's cumulative blue bond volume reaches USD 70 million, following the bank's inaugural blue bond in August. The funds are aligned with FAB's 2023 Sustainable Finance Framework and governed by the International Capital Market Association's Green Bond Principles. The proceeds will finance wastewater treatment systems capable of processing 430,000 cubic metres daily for irrigation, and a desalination plant producing 37 million litres per day, powered by renewable energy and backed by 700 MWh of battery storage capacity.

FAB has committed that all projects financed under these blue bonds will undergo strict environmental, social and governance assessment and continuous monitoring. The bank frames these initiatives as key to achieving the UAE Water Agenda 2036 targets, and advancing national climate resilience and ecological goals.

Shargiil Bashir, FAB's Group Chief Sustainability Officer, emphasised that the new bond“demonstrates our continued commitment to water resilience and marine protection across the UAE,” noting that“USD 70 million now mobilised sets a new benchmark for sustainable finance in the region.” He also flagged the bank's upcoming role as principal and official banking partner for the IUCN World Conservation Congress, where FAB expects to foreground blue economy policies.

Matt Lawton, Head of Impact in Fixed Income at T. Rowe Price, said the investment in FAB's second blue bond“marks a significant step forward for sustainable finance in the region,” reflecting his firm's desire to channel capital into blue economy projects that deliver environmental and financial returns.

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Blue bonds today remain a relatively niche instrument in global capital markets, tailored to support projects that conserve marine ecosystems, safeguard coastlines and promote blue carbon ecosystems. FAB's successive issuance signals growing appetite in the UAE for sustainable finance tools that combine ecological and infrastructural aims.

Observers note that the gulf region's push into specialised green and blue financing is accelerating, with Abu Dhabi and Dubai pursuing net-zero and carbon capture ambitions. FAB is positioning itself as a pioneer in this space. Its credit ratings-Aa3 by Moody's, AA- by S&P, and AA- by Fitch-lend weight to its ability to channel meaningful capital into sustainability projects.

via Greenlogue

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