Abu Dhabi First Bank has announced the successful completion of its second blue bond issuance, valued at $20 million for a duration of three years.
This issuance follows closely on the heels of the bank’s inaugural blue bond launched in August 2025, reaffirming its commitment to financing initiatives that protect water resources and oceans, enhance resilience to climate change, and support environmental sustainability.
Blue bonds are a relatively new and promising financial instrument globally, aimed at boosting investments in endeavors that conserve marine resources, protect coastlines, and promote blue carbon ecosystems.
With the launch of this second issuance, the bank’s total blue bond offerings have reached $70 million, marking a significant achievement that underscores the bank’s leadership in blue finance and aligns with Abu Dhabi First Bank’s 2023 sustainable finance framework and the green bond principles established by the International Capital Market Association.
The net proceeds from this issuance will be entirely allocated to fund projects in the water and marine resource sectors, including: wastewater treatment facilities with a daily capacity of 430,000 cubic meters that allow for water reuse in irrigation in Abu Dhabi and Al Ain, a new desalination plant producing 37 million liters per day powered by renewable energy, and a production capacity of 410,000 MWh annually, supported by battery storage facilities of up to 700 MWh. All projects will undergo strict environmental, social, and governance risk assessment procedures with ongoing monitoring to ensure a tangible environmental and social impact.
These initiatives directly contribute to the UAE’s Water Security Strategy 2036 objectives and reinforce the country’s commitment to sustainable environmental development.
Chargil Bashir, Head of Sustainability at Abu Dhabi First Bank Group, stated that the second blue bond issuance reflects the bank’s ongoing commitment to supporting the sustainability of water resources and protecting the marine environment throughout the UAE. He added that the bank continues to set new standards for sustainable finance in the region, coinciding with Abu Dhabi hosting the global conference on nature conservation, where Abu Dhabi First Bank proudly participates as the main banking partner and active contributor to shaping the blue economy agenda.
He emphasized that the latest issuance from Abu Dhabi First Bank highlights the positive impact that financial innovation can have on protecting nature and communities, noting that the bank remains dedicated to collaborating with the market and investors to enable a more inclusive, resilient, and sustainable future for the UAE and beyond.
Matt Lawton, Head of Impact Investments in Fixed Income at T. Rowe Price, remarked that the second blue bond issuance from Abu Dhabi First Bank represents a significant milestone in the region’s sustainable financing journey.
He added: “This investment, executed on behalf of our clients, demonstrates our commitment to pooling and mobilizing capital to support blue economy growth.”
Through its partnership with Abu Dhabi First Bank, T. Rowe Price is directing funds towards impactful projects that enhance water resource resilience and protect marine systems while providing rewarding investment opportunities for clients. He noted that this deal sets a new benchmark for the contributions of capital markets in achieving positive environmental and social impacts both within the UAE and beyond.