First Abu Dhabi Bank Issues MENA’s First AED 1 Billion Digitally Native Green Bond

First Abu Dhabi Bank (FAB) has issued the Middle East and North Africa region’s first digitally native green bond, a landmark AED 1 billion issuance settled via distributed ledger technology. For fintech professionals, this represents a significant convergence of sustainable finance and digital capital markets infrastructure, proving that blockchain-based settlement can handle high-value, environmentally focused debt instruments.

What was announced

First Abu Dhabi Bank (FAB) has successfully issued and settled AED 1 billion in three-year Digitally Native Green Notes. This issuance is the first digital green bond from the Middle East and North Africa (MENA) region. The notes were priced on 13 October 2026 with an interest rate of 5.75% and are scheduled to mature on 15 October 2029. Settlement was conducted through Euroclear’s Digital Financial Market Infrastructure (D-FMI), which utilizes distributed ledger technology (DLT) to manage the issuance, distribution, and settlement of securities. This infrastructure allows for digital innovation while maintaining connectivity with established secondary market services.

The proceeds from this issuance are earmarked for projects that provide positive environmental or climate-related benefits, aligning with the bank’s broader sustainability goals. This transaction marks FAB’s second digital bond listing on the Abu Dhabi Securities Exchange (ADX), following its inaugural digital bond issuance in 2025. Currently, FAB remains the only issuer with digital bonds listed on the ADX. The transaction involved several major financial institutions, with First Abu Dhabi Bank PJSC and Standard Chartered Bank acting as Digitally Native Notes Structurers. Joint Lead Managers included Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, HSBC Bank plc, Industrial and Commercial Bank of China (Asia) Limited, and Standard Chartered Bank. Citibank N.A., London Branch served as the Fiscal Agent and Digitally Native Notes Agent.

"The future of finance must be both sustainable and innovative. With MENA’s first digitally native green bond, FAB is bringing these priorities together and setting a new benchmark for the region’s capital markets. Building on our inaugural digital bond in 2025, we are demonstrating how digital infrastructure can advance sustainable finance through greater automation and more efficient execution. This reflects our commitment to developing financing solutions that support the transition to a low-carbon economy and reinforce the UAE’s leadership in financial innovation."

Lars Kramer, Group Chief Financial Officer at First Abu Dhabi Bank

The companies involved

First Abu Dhabi Bank (FAB) is the United Arab Emirates’ global bank and is recognized as one of the world’s largest and safest financial institutions. Headquartered in Abu Dhabi, the bank provides a comprehensive range of financial solutions and products across its international network. FAB has positioned itself as a leader in the MENA region's transition to a low-carbon economy, having already facilitated AED 395 billion in sustainable and transition financing as of the first half of 2026. This represents approximately 79% of its AED 500 billion target set for 2030.

Standard Chartered Bank, which served as a structurer and joint lead manager for this issuance, is a major international banking group with a significant presence in emerging markets and a history of collaborating on digital and sustainable finance initiatives. The involvement of these institutions, alongside Euroclear’s D-FMI, highlights the growing integration of traditional banking giants with next-generation financial market infrastructure. FAB remains the primary mover in the UAE's digital bond space, maintaining its status as the sole issuer of such instruments on the local exchange.

What FF News has reported before

FF News has closely followed FAB’s expansion into specialized financial products and its leadership in regional sustainability. In September 2026, we reported that FAB Sets AED 100 Billion Blue Finance Target to Lead MENA Water Sustainability, marking its entry into the UN’s sustainable finance initiatives. The bank has also been active in the high-end retail space, as seen when FAB and Mastercard Launch UAE’s First Invitation-Only World Legend Exclusive Card. This digital bond issuance follows broader fintech activity in the UAE, including the listing of the UAE’s Dirham-Backed Stablecoin DDSC and the growth of embedded finance through Wio Bank and Toothpick.

What this means

This issuance moves the needle by proving that "digitally native" is no longer a pilot-phase concept for major regional banks. By combining green finance with DLT-based settlement, FAB is putting pressure on other MENA financial institutions to modernize their capital market workflows or risk being left behind in the race for efficiency. The use of Euroclear’s D-FMI suggests a shift toward institutional-grade blockchain solutions that bridge the gap between legacy systems and decentralized technology. However, the sector still faces questions regarding the long-term secondary market liquidity of these digital assets and how interoperable these proprietary DLT platforms will be as more issuers enter the space.