First Abu Dhabi Bank (FAB) has priced a €850 million long five-year green bond, marking its latest sustainable finance issuance under the bank’s Euro Medium Term Note Programme. The bond carries a 3.1201% coupon, aligning with FAB’s strategy to expand its footprint in the European green bond market.
FAB, which holds ratings of Aa3 from Moody’s and AA- from both S&P and Fitch, set the bond’s spread at 70 basis points over the mid-swap rate, tightened from initial guidance of MS+100bps. The transaction generated strong investor demand, with the order book reaching €1.9 billion at its peak before finalising at €1.4 billion, excluding joint lead manager interest. The final yield was confirmed at 3.122%.
A consortium of major international banks, Citi, Crédit Agricole CIB, FAB, HSBC, Industrial and Commercial Bank of China, Societe Generale, and Standard Chartered, acted as joint lead managers and bookrunners. Their collaboration supported the successful pricing and placement of the senior unsecured green bond, which forms part of FAB’s $20 billion Euro Medium Term Note Programme.
The bond is scheduled to settle on 20 November 2025 and will be listed on the London Stock Exchange’s main market. Its expected rating mirrors the issuer’s own credit profile, reflecting the strength and stability of the UAE’s largest bank by asset size.
FAB continues to reinforce its position in the region’s sustainable finance landscape. The bank previously issued a $750 million five-year Reg S low-carbon energy bond in September, priced at T+65bps, as part of ongoing efforts to support environmentally aligned projects and transition-focused investments.
With demand for sustainable assets continuing to rise across global markets, FAB’s latest issuance highlights both investor confidence in the bank’s credit strength and growing appetite for green-labelled instruments within international fixed-income markets.
