Abu Dhabi:First Abu Dhabi Bank (FAB) has successfully issued and settled AED1 billion in three-year Digitally Native Green Notes, marking the first digital green bond from the Middle East and North Africa (MENA) region.
According to Emirates News Agency, this landmark issuance combines sustainable finance with digital capital markets infrastructure, highlighting FAB's dedication to financial innovation and its role in advancing the region's capital markets. The notes, priced on October 13, 2026, at an interest rate of 5.75 percent, were settled through Euroclear's Digital Financial Market Infrastructure (D-FMI) and are set to mature on October 15, 2029.
This transaction builds on FAB's history in digital capital markets and will be its second digital bond listed on Abu Dhabi Securities Exchange (ADX), following its first digital bond issuance in 2025. Notably, FAB is the only issuer with digital bonds listed on ADX. The issuance also supports FAB's commitment to sustainable and transition finance, having facilitated AED395 billion in such financing by the first half of 2026, reaching 79 percent of its AED500 billion target for 2030.
Lars Kramer, Group Chief Financial Officer at FAB, emphasized the importance of sustainability and innovation in finance, stating that the bank is setting a new benchmark for MENA's capital markets with this digital green bond. He highlighted how digital infrastructure enhances sustainable finance by enabling greater automation and efficiency, reinforcing the UAE's leadership in financial innovation.
Euroclear's D-FMI employs distributed ledger technology to manage the issuance, distribution, and settlement of digitally native securities, allowing issuers and investors to leverage digital advancements while maintaining traditional market infrastructure.
First Abu Dhabi Bank PJSC and Standard Chartered Bank served as Digitally Native Notes Structurers, with Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, HSBC Bank plc, Industrial and Commercial Bank of China (Asia) Limited, and Standard Chartered Bank acting as Joint Lead Managers. Citibank N.A., London Branch, was the Fiscal Agent and Digitally Native Notes Agent, while Dentons and Co. provided legal counsel to the issuer, and Allen Overy Shearman Sterling LLP advised the Joint Lead Managers.