First Abu Dhabi Bank issues dirham-dominated green sukuk

First Abu Dhabi Bank issues dirham-dominated green sukuk

New issuance to support UAE’s economic diversification, sustainability efforts

The Abu Dhabi Securities Exchange (ADX) launched on Wednesday the listing of First Abu Dhabi Bank’s (FAB) AED1.3 billion ($353 million) green sukuk, which is expected to contribute to the UAE’s economic diversification and sustainability efforts.

Launched ahead of COP28, the latest issuance is the largest-ever dirham denominated sukuk and the lowest-ever priced issuance in the market by a UAE financial institution. It aims to support the UAE’s objectives in driving a green, diversified and resilient economy, ADX and FAB said in a joint statement.

“This is an important milestone for both green finance and Islamic finance in the UAE, unlocking new opportunities for investments that achieve important social and sustainability outcomes,” said Hana Al Rostamani, Group CEO of FAB, the largest lender in the country with total assets of AED1.2 trillion.

FAB’s sukuk marks the fifth green debt instrument on the local bourse.

Last month, energy firm Masdar’s $750 million green bond listed on ADX, following earlier listings of $1 billion and $700 million green bonds by the Abu Dhabi National Energy Company (TAQA) and Sweihan PV Power Company.

Green finance has been growing in popularity among investors in the