First Abu Dhabi Bank has priced a US-dollar denominated, five-year low-carbon energy bond of $750 million at Treasuries plus 65 basis points, following an order book that exceeded $2.3 billion, excluding joint-lead manager interest. The issuance is rated Aa3 by Moody’s, AA- by S\&P and AA- by Fitch, each with stable outlooks, and was initially marketed at T+95 bp area through IPTs. This moves positions the bank at the leading edge of sustainable debt issuance in the GCC.

Investor demand for ESG-aligned fixed income surged as the bond drew in significant global attention. The order book, exceeding three times the deal size, reflects robust confidence in the borrower and the growing appeal of low-carbon financing in global capital markets.

The bond was issued under FAB’s USD 20 billion Euro Medium Term Note programme, with proceeds strictly allocated to refinance projects fitting its Sustainable Finance Framework—particularly those tied to low-carbon energy and potentially nuclear power generation. The ratings, aligned with the issuer’s baseline credit profile, underscore strong investor confidence in FAB’s credit quality.

Execution of the deal involved an international syndicate of joint lead managers and bookrunners, including Bank of China, Barclays, Citi, Crédit Agricole Corporate and Investment Bank, HSBC and Standard Chartered Bank—highlighting the cross-border appeal of the issuance and FAB’s well-established global banking relationships.

This bond follows FAB’s prior sustainability-focused instruments, notably a HKD 390 million, five-year Blue Bond—the first of its kind issued by a financial institution in the Gulf. That issuance targeted water-related sustainability initiatives under ICMA Green Bond Principles and FAB’s own Sustainable Finance Framework, laying the groundwork for its broader ESG ambitions.

Each credit approval within FAB’s internal risk governance process is evaluated through its ESG Risk Framework before being sanctioned as a sustainable finance instrument—an example of how ESG considerations are embedded in its underwriting decisions. Furthermore, FAB has declared a net-zero by 2050 ambition, reinforcing its strategic orientation toward sustainable development financing.

Market analysis indicates that this bond achieved the tightest senior spread for a Gulf issuance in recent memory, underscoring both FAB’s strong credit fundamentals and the deepening investor appetite for labelled ESG instruments emanating from the region.