FAB’s inaugural AED issuance achieves multiple milestones

First Abu Dhabi Bank (FAB) has successfully printed the first-ever AED denominated Green issuance in the UAE, with the Shariah-compliant instrument also marking FAB’s first UAE dirham-denominated public issuance.

The offering is the largest-ever AED Sukuk as well as the lowest-ever pricing achieved by a UAE Financial Institution in the AED market. With an issuance of AED 1.3 Billion, the RegS 3-year Green Sukuk was successfully priced on July 19, 2023 at 4.93%.

Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “FAB’s inaugural Green Sukuk, and the UAE’s first AED-denominated Green issuance, represents a landmark achievement for both the Green Finance and Islamic Finance sectors in the UAE, as well as for local bonds. As a leading force for investment banking, FAB fully supports the establishment of a thriving dirham bond market, serving to elevate Abu Dhabi’s increasing role as a centre for global finance. The success of this issuance demonstrates significant progress in expanding FAB’s offering for clients, and towards achieving important national priorities on sustainability and economic diversification.”

FAB’s milestone issuance showcases the potential of both Green and Islamic finance and strongly connects to the UAE’s climate objectives, especially in a year when the country will host COP28.

FAB also acted as joint lead manager and green structuring agent on this Sukuk issuance.