First Abu Dhabi Bank (FAB), the UAE’s largest lender, has launched a three-year euro-denominated green bond offering, inviting investors to participate in a senior unsecured benchmark transaction under its established Euro Medium Term Note Programme.
The deal, structured as a Regulation S, Category 2 issuance, will be offered through FAB’s $20 billion Euro Medium Term Note Programme. Initial price thoughts were circulated in the mid-swap plus 100 to 105 basis points range, with final pricing and coupon details expected to be determined during the book-building process.
Credit agencies continue to place FAB among the region’s strongest banking institutions. The bank carries ratings of Aa3 from Moody’s and AA- from both S&P and Fitch, with all three agencies maintaining stable outlooks. The proposed bond is expected to receive ratings aligned with the bank’s existing credit profile.
Market participants anticipate the securities will be listed on the London Stock Exchange’s Main Market following completion of the transaction.
A syndicate of international banks has been assembled to manage the issuance, including BBVA, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, Société Générale and Standard Chartered. Standard Chartered will also act as the billing and delivery bank for the transaction.
FAB said funds raised through the bond will support its sustainability strategy. An amount equal to at least the net proceeds from the issuance will be directed toward financing or refinancing projects that qualify under the “green” categories outlined in the bank’s Sustainable Finance Framework.
The offering arrives as Gulf lenders continue to tap international debt markets to fund environmentally focused investments, reflecting growing investor demand for sustainable finance instruments across the region.
