First Abu Dhabi Bank (FAB) has issued and settled AED1 billion ($272.3 million) of three-year digitally native green notes, which the bank says is the first digital green bond from the Middle East and North Africa.
The notes were priced on October 13 at a fixed rate of 5.75% and settled on October 15 through Euroclear’s Digital Financial Market Infrastructure (D-FMI), FAB said in a statement. They mature on October 15, 2029.
D-FMI uses distributed ledger technology to issue, distribute and settle securities. The notes were created on the platform rather than issued conventionally and tokenized later.
The notes were issued at 99.696% of their principal amount, implying a yield of 5.862% a year, Economy Middle East reported, citing FAB’s supplemental prospectus. Interest is paid twice a year.
FAB said the proceeds will support projects with environmental or climate-related benefits.
The deal is FAB’s second digital bond, after its first in 2025. The bank said it will be its second digital bond listed on the Abu Dhabi Securities Exchange (ADX), and that it remains the only issuer with digital bonds listed there.
“The future of finance must be both sustainable and innovative,” Lars Kramer, FAB’s Group Chief Financial Officer, said in the statement.
FAB and Standard Chartered Bank acted as structurers for the digital notes. Emirates NBD, FAB, HSBC, Industrial and Commercial Bank of China (Asia) and Standard Chartered were joint lead managers. Citibank’s London branch was fiscal agent.
As of the first half of 2026, FAB had facilitated AED395 billion in sustainable and transition financing. That is 79% of its AED500 billion target for 2030.
FAB reported total assets of AED1.41 trillion ($384 billion) at the end of June 2026.
